Rev. Rul. 98-57, 1998-49 I.R.B. 4.

                       Internal Revenue Service
                                 Revenue Ruling

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

                          Released: November 19, 1998
                          Published: December 7, 1998

Section 1274. - -Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

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 December 1998.

Section 56. - -Adjustments in Computing Alternative Minimum Taxable Income
  What procedures should taxpayers follow to obtain automatic consent to change their method of accounting for certain deferred payment sales contracts (relating to property used or produced in the trade or business of farming) to the installment method for alternative minimum tax purposes.

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

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

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

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

  This revenue ruling provides various prescribed rates for federal income tax purposes for December 1998 (the current month.) Table 1 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. 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. Finally, Table 6 contains the 1999 interest rate for purposes of sections 846 and 807.

                            REV. RUL. 98-57 TABLE 4
       Appropriate Percentages Under Section 42(b)(2) for December 1998
Appropriate percentage for the 70% present value low-income housing       8.14%
  credit

Appropriate percentage for the 30% present value low-income housing       3.49%
  credit

                            REV. RUL. 98-57 TABLE 5
                   Rate Under Section 7520 for December 1998
Applicable federal rate for determining the present value of an annuity,  5.4%
  an interest for life or a term of years, or a remainder or
  reversionary interest

                            REV. RUL. 98-57 TABLE 6
                        Rate Under Sections 846 and 807
Applicable rate of interest for 1999 for purposes of sections 846 and     6.3%
  807

                REV. RUL. 98-57 TABLE 1
    Applicable Federal Rates (AFR) for December 1998
                 Period for Compounding
               Annual    Semiannual  Quarterly  Monthly
Short-Term
     AFR        4.33%      4.28%       4.26%     4.24%
110% AFR        4.77%      4.71%       4.68%     4.66%
120% AFR        5.21%      5.14%       5.11%     5.09%
130% AFR        5.64%      5.56%       5.52%     5.50%
Mid-Term
     AFR        4.52%      4.47%       4.45%     4.43%
110% AFR        4.98%      4.92%       4.89%     4.87%
120% AFR        5.43%      5.36%       5.32%     5.30%
130% AFR        5.89%      5.81%       5.77%     5.74%
150% AFR        6.82%      6.71%       6.65%     6.62%
175% AFR        7.97%      7.82%       7.75%     7.70%
Long-Term
     AFR        5.25%      5.18%       5.15%     5.12%
110% AFR        5.78%      5.70%       5.66%     5.63%
120% AFR        6.32%      6.22%       6.17%     6.14%
130% AFR        6.84%      6.73%       6.67%     6.64%

                REV. RUL. 98-57 TABLE 2
             Adjusted AFR for December 1998
                 Period for Compounding
               Annual    Semiannual  Quarterly  Monthly
Short-term
adjusted AFR    3.20%      3.17%       3.16%     3.15%
Mid-term
adjusted AFR    3.89%      3.85%       3.83%     3.82%
Long-term
adjusted AFR    4.67%      4.62%       4.59%     4.58%

                            REV. RUL. 98-57 TABLE 3
                   Rates Under Section 382 for December 1998
Adjusted federal long-term rate for the current month                     4.67%
Long-term tax-exempt rate for ownership changes during the current month  4.80%
  (the highest of the adjusted federal long-term rates for the current
  month and the prior two months).

Rev. Rul. 98-57, 1998-49 I.R.B. 4.