Rev. Rul. 99-41, 1999-41 I.R.B..

                       Internal Revenue Service
                                 Revenue Ruling

                          Released: September 21, 1999

  Part I Section 1274.--Determination of Issue Price in the Case of Certain Debt

  Instruments Issued for Property (Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)

  This revenue ruling provides various prescribed rates for federal income tax purposes for October 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. 99-41 TABLE 1
     Applicable Federal Rates (AFR) for October 1999
                 Period for Compounding
           Annual Semiannual Quarterly Monthly
Short-Term
AFR            5.54%     5.47%    5.43%    5.41%
110% AFR       6.11%     6.02%    5.98%    5.95%
120% AFR       6.67%     6.56%    6.51%    6.47%
130% AFR       7.24%     7.11%    7.05%    7.01%
Mid-Term
AFR            6.02%     5.93%    5.89%    5.86%
110% AFR       6.63%     6.52%    6.47%    6.43%
120% AFR       7.25%     7.12%    7.06%    7.02%
130% AFR       7.86%     7.71%    7.64%    7.59%
150% AFR       9.10%     8.90%    8.80%    8.74%
175% AFR      10.65%    10.38%   10.25%   10.16%
Long-Term
AFR            6.31%     6.21%    6.16%    6.13%
110% AFR       6.95%     6.83%    6.77%    6.73%
120% AFR       7.59%     7.45%    7.38%    7.34%
130% AFR       8.23%     8.07%    7.99%    7.94%

        REV.RUL. 99-41 TABLE 2
       Adjusted AFR for October 1999
          Period for Compounding
    Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR   3.79%   3.75%   3.73%  3.72%
Mid-term
adjusted AFR   4.55%   4.50%   4.47%  4.46%
Long-term
adjusted AFR   5.45%   5.38%   5.34%  5.32%

                            REV. RUL. 99-41 TABLE 3
Rates Under Section 382 for October 1999
Adjusted federal long-term rate for the current month                     5.45%
Long-term tax-exempt rate for ownership changes during the current month  5.45%
  (the highest of the adjusted federal long-term rates for the current
  month and the prior two months.)

                            REV. RUL. 99-41 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for October 1999
Appropriate percentage for the 70% present value low-income housing       8.45%
  credit
Appropriate percentage for the 30% present value low-income housing       3.62%
  credit

REV. RUL. 99-41 TABLE 5
Rate Under Section 7520 for October 1999
Applicable federal rate for determining the present value of an annuity,   7.2%
  an interest for life or a term of years, or a remainder or reversionary
  interest

Rev. Rul. 99-41, 1999-41 I.R.B..