Rev. Rul. 99-11, 1999-10 I.R.B. 18.
Internal Revenue Service
Revenue Ruling
DETERMINATION OF ISSUE PRICE IN THE CASE OF CERTAIN
DEBT INSTRUMENTS
ISSUED
FOR PROPERTY
Released:
February 19, 1999
Published:
March 8, 1999
Section 1274. - Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
Section 846. - Discounted Unpaid Losses Defined
Section 1288. - Treatment of Original Issue Discount on Tax-Exempt Obligations
Section 7520. - Valuation Tables
Section 7872. - Treatment of Loans With Below-Market Interest Rates
Determination of issue price in the case of certain debt instruments issued for property. This ruling provides various prescribed rates for federal income tax purposes for March 1999.
The adjusted applicable federal short-term, and long-term rates are set forth for the month of March 1999.
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999.
This revenue ruling provides various prescribed rates for federal income tax purposes for March 1999 (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. 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. 99-11 TABLE 1
Applicable Federal Rates (AFR) for March 1999
Period for Compounding
Annual Semiannual Quarterly Monthly
Short-Term
AFR
4.67% 4.62%
4.59% 4.58%
110% AFR
5.14% 5.08%
5.05% 5.03%
120% AFR
5.62% 5.54%
5.50% 5.48%
130% AFR
6.10% 6.01%
5.97% 5.94%
Mid-Term
AFR
4.83% 4.77%
4.74% 4.72%
110% AFR
5.32% 5.25%
5.22% 5.19%
120% AFR
5.80% 5.72%
5.68% 5.65%
130% AFR
6.30% 6.20%
6.15% 6.12%
150% AFR
7.29% 7.16%
7.10% 7.06%
175% AFR
8.52% 8.35%
8.26% 8.21%
Long-Term
AFR
5.30% 5.23%
5.20% 5.17%
110% AFR
5.83% 5.75%
5.71% 5.68%
120% AFR
6.38% 6.28%
6.23% 6.20%
130% AFR
6.92% 6.80%
6.74% 6.71%
REV.
RUL. 99-11 TABLE 2
Adjusted
AFR for March 1999
Period
for Compounding
Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 3.09%
3.07% 3.06% 3.05%
Mid-term adjusted AFR 3.77%
3.74% 3.72% 3.71%
Long-term adjusted AFR 4.68%
4.63% 4.60% 4.59%
REV.
RUL. 99-11 TABLE 3
Rates
Under Section 382 for March 1999
Adjusted federal long-term rate for the current
month
4.68%
Long-term tax-exempt rate for ownership changes during the current month 4.71%
(the highest of the adjusted federal long-term rates for the current
month and the prior two months.)
REV.
RUL. 99-11 TABLE 4
Appropriate Percentages Under Section
42(b)(2) for March 1999
Appropriate percentage for the 70% present value low-income
housing 8.18%
credit
Appropriate percentage for the 30% present value low-income
housing 3.51%
credit
REV.
RUL. 99-11 TABLE 5
Rate
Under Section 7520 for March 1999
Applicable federal rate for determining the present value of an annuity,
5.8%
an interest for life or a term of years, or a remainder or reversionary
interest
Rev. Rul. 99-11, 1999-10 I.R.B. 18.