Rev. Rul. 99-8,1999-6 I.R.B. 10.

                       Internal Revenue Service
                                 Revenue Ruling

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

                           Released: January 21, 1999
                          Published: February 8, 1999

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

Section 1288. - Treatment of Original Issue Discount on Tax-Exempt Obligations

Section 7520. - Valuation Tables

Section 7701. - Definitions, 26 CFR 7701-3: Classification of certain business entities.

Section 7872. - Treatment of Loans with Below-Market Interest Rates

  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 February 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 1999.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 1999.

  Tax consequences when a single member domestic limited liability company that is disregarded as an entity separate from its owner becomes an entity with more than one owner that is classified as a partnership.

  Tax consequences if one person purchases all of the ownership interests in a domestic limited liability company that is classified as a partnership.

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 1999.

  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 February 1999.

  This revenue ruling provides various prescribed rates for federal income tax purposes for February 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. 99-8 TABLE 1
    Applicable Federal Rates (AFR) for February 1999
                 Period for Compounding
              Annual    Semiannual  Quarterly   Monthly
Short-Term
       AFR    4.62%       4.57%       4.54%      4.53%
  110% AFR    5.09%       5.03%       5.00%      4.98%
  120% AFR    5.56%       5.48%       5.44%      5.42%
  130% AFR    6.03%       5.94%       5.90%      5.87%
  Mid-Term
       AFR    4.71%       4.66%       4.63%      4.62%
  110% AFR    5.20%       5.13%       5.10%      5.08%
  120% AFR    5.67%       5.59%       5.55%      5.53%
  130% AFR    6.15%       6.06%       6.01%      5.98%
  150% AFR    7.11%       6.99%       6.93%      6.89%
  175% AFR    8.33%       8.16%       8.08%      8.02%
Long-Term
       AFR    5.24%       5.17%       5.14%      5.12%
  110% AFR    5.77%       5.69%       5.65%      5.62%
  120% AFR    6.30%       6.20%       6.15%      6.12%
  130% AFR    6.83%       6.72%       6.66%      6.63%

                    REV. RUL. 99-8 TABLE 2
                Adjusted AFR for February 1999
                    Period for Compounding
                         Annual  Semiannual  Quarterly  Monthly
Short-term adjusted AFR  3.13%     3.11%       3.10%     3.09%
Mid-term adjusted AFR    3.87%     3.83%       3.81%     3.80%
Long-term adjusted AFR   4.71%     4.66%       4.63%     4.62%

                            REV. RUL. 99-8 TABLE 3
                   Rates Under Section 382 for February 1999
Adjusted federal long-term rate for the current month                     4.71%
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. 99-8 TABLE 4
       Appropriate Percentages Under Section 42(b)(2) for February 1999
Appropriate percentage for the 70% present value low-income housing       8.16%
  credit
Appropriate percentage for the 30% present value low-income housing       3.50%
  credit

                            REV. RUL. 99-8 TABLE 5
                   Rate Under Section 7520 for February 1999