Charitable Federal Midterm Rate for December 5.4%

Charitable Federal Midterm Rate for December 5.4%

News story posted in Revenue Rulings on 25 November 1998| comments
audience: National Publication | last updated: 18 May 2011
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Summary

The IRS in Rev. Rul. 98-57 has published the applicable federal interest rates (AFR) and the adjusted AFR for December 1998. The rate used for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest is 5.4 percent.

Rev. Rul. 98-57, 1998-49 IRB 1, 11-19-98

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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 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 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 (the highest of the adjusted
federal long-term rates for the current month and the
prior two months.)                                        4.80%
                       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 credit                           8.14%
Appropriate percentage for the 30% present
value low-income housing credit                           3.49%
                       REV. RUL. 98-57 TABLE 5
              Rate Under Section 7520 for December 1998
Applicable federal rate for determining the present
value of an annuity, an interest for life or a term
of years, or a remainder or reversionary interest         5.4%
                      REV. RUL. 98-57  TABLE 6
                   Rate Under Sections 846 and 807
Applicable rate of interest for 1999
for purposes of sections 846 and 807                      6.3%


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