Rev. Rul. 98-18, 1998-14 I.R.B. 22.

FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE, AND THE LONG-TERM EXEMPT RATE

Released: March 18, 1998
Published: April 6, 1998

Section 1274. - Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for April 1998.

Section 42. - Low-Income Housing Credit
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 280G. - Golden Parachute Payments
Federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 382. - Limitation on Net Operating Loss Carryforwards and Certain Built- In Losses Following Ownership Change
The adjusted federal long-term rate is set forth for the month of April 1998.

Section 412. - Minimum Funding Standards
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 467. - Certain Payments for the Use of Property or Services
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 468. - Special Rules for Mining and Solid Waste Reclamation and Closing Costs
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 482. - Allocation of Income and Deductions Among Taxpayers
Federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 483. - Interest on Certain Deferred Payments
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 642. - Special Rules for Credits and Deductions
Federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 807. - Rules for Certain Reserves
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 846. - Discounted Unpaid Losses Defined
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 1288. - Treatment of Original Issue Discount on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 7520. - Valuation Tables
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Section 7872. - Treatment of Loans with Below-Market Interest Rates
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of April 1998.

Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for April 1998.

This revenue ruling provides various prescribed rates for federal income tax purposes for April 1998 (the current month.) Table I contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

REV. RUL. 98-18 TABLE 1
Applicable Federal Rates (AFR) for April 1998

Short-Term

Mid-Term

Long-Term

REV. RUL. 98-18 TABLE 2
Adjusted AFR for April 1998

Short-Term

Mid-term

Long-term

REV. RUL. 98-18 TABLE 3

Rates Under Section 382 for April 1998
Adjusted federal long-term rate for the current month 5.04%
Long-term tax-exempt rate for ownership changes during the current month 5.04% (the highest of the adjusted federal long-term rates for the current month and the prior two months.)

REV. RUL. 98-18 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for April 1998
Appropriate percentage for the 70% present value low-income housing 8.37% credit
Appropriate percentage for the 30% present value low-income housing 3.59% credit

REV. RUL. 98-18 TABLE 5

Rate Under Section 7520 for April 1998
Applicable federal rate for determining the present value of an annuity, 6.8% an interest for life or a term of years, or a remainder or reversionary interest

Rev. Rul. 98-18, 1998-14 I.R.B. 22.