Part I. Rulings — Internal Revenue Bulletin 1998-2

Due to a miscalculation, Rev. Rul. 97–16, 1997–13 I.R.B. 4, Rev. Rul. 97–25, 1997–23 I.R.B. 4, and Rev. Rul. 97–34, 1997–34 I.R.B. 4, are in error regarding the specific bond factor amounts for buildings placed in service in calendar year 1987 and disposed of in calendar year 1997. The present revenue ruling provides a complete list of the corrected amounts. Taxpayers who posted bonds prior to the publication date of this revenue ruling based upon the above mentioned bond factor amounts may continue to rely on these figures under the authority of § 7805(b).

For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul. 90–60, 1990–2 C.B. 3, for dispositions occurring during calendar years 1987, 1988, and 1989;

Rev. Rul. 90–88, 1990–2 C.B. 7, for

Section 42.—Low-Income Housing Credit

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of January 1998. See Rev. Rul. 98–4, page 18.

Low-income housing credit; satisfac- tory bond; “bond factor” amounts for the period October through December 1997. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 1997. The ruling also corrects errors in the bond factor amounts for properties placed in service in 1987 and disposed of between January through September 1997.

Rev. Rul. 98–3

In Rev. Rul. 90–60, 1990–2 C.B. 3, the

methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of “bond factor” amounts for dispositions occurring during each calendar month.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) for dispositions of qualified low-income buildings or interests therein during the period October through December 1997. Table 2 provides a summary of the bond factor amounts for dispositions occurring during the period January through September 1997. Table 3 provides a summary of bond factor amounts for dispositions oc

Internal Revenue Service provided guid- ance to taxpayers concerning the general curring during the period January through December 1996. dispositions occurring during calendar year 1990; Rev. Rul. 91–67, 1991–2 C.B.
Table 1 Rev. Rul. 98–3 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
	Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997
Oct ‘97 Nov ‘97 Dec ‘97	79.95 79.95 79.95	79.99 79.78 79.57	82.52 82.30 82.09	85.46 85.23 85.01	88.88 88.65 88.42	92.76 92.52 92.28	96.76 96.51 96.26	100.63 100.38 100.13	104.47 104.22 103.99	108.59 108.38 108.20	112.52 112.52 112.52

Table 2 Rev. Rul. 98–3 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
	Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997

Internal Revenue Service provided guid- ance to taxpayers concerning the general curring during the period January through December 1996. dispositions occurring during calendar year 1990; Rev. Rul. 91–67, 1991–2 C.B.

Jan ‘97 Feb ‘97 Mar ‘97 Apr ‘97 May ‘97 Jun ‘97 Jul ‘97 Aug ‘97 Sep ‘97	79.95 79.95 79.95 79.95 79.95 79.95 79.95 79.95 79.95	82.08 81.83 81.59 81.35 81.11 80.88 80.65 80.43 80.21	84.67 84.41 84.15 83.91 83.66 83.42 83.19 82.96 82.74	87.70 87.43 87.16 86.90 86.64 86.40 86.15 85.92 85.68	91.25 90.96 90.67 90.40 90.13 89.87 89.61 89.36 89.12	95.32 95.00 94.69 94.39 94.09 93.81 93.54 93.27 93.01	99.53 99.17 98.83 98.50 98.18 97.88 97.58 97.30 97.03	103.58 103.18 102.81 102.45 102.11 101.79 101.48 101.18 100.90	107.56 107.11 106.69 106.31 105.95 105.61 105.30 105.01 104.73	111.85 111.28 110.79 110.36 109.98 109.64 109.33 109.06 108.81	112.52 112.52 112.52 112.52 112.52 112.52 112.52 112.52 112.52

January 12, 1998 4 1998–2 I.R.B.

Table 3 Rev. Rul. 98–3 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
	Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996
Jan ’96 Feb ’96 Mar ’96 Apr ’96 May ’96 Jun ’96 Jul ’96 Aug ’96 Sep ’96 Oct ’96 Nov ’96 Dec ’96	82.72 82.47 82.22 76.76 76.54 76.32 81.06 80.84 80.61 80.39 80.17 79.96	85.18 84.92 84.66 78.26 78.03 77.81 83.47 83.24 83.01 82.78 82.56 82.35	87.85 87.58 87.31 79.91 79.68 79.46 86.09 85.85 85.62 85.39 85.16 84.95	91.00 90.71 90.43 81.94 81.71 81.48 89.16 88.92 88.68 88.44 88.21 87.99	94.73 94.42 94.11 84.43 84.19 83.95 92.78 92.52 92.28 92.03 91.80 91.57	99.06 98.71 98.38 87.38 87.12 86.86 96.94 96.67 96.41 96.15 95.90 95.67	103.57 103.18 102.80 90.40 90.12 89.85 101.25 100.96 100.68 100.41 100.16 99.92	107.87 107.41 106.98 93.16 92.86 92.58 105.33 105.04 104.76 104.49 104.25 104.02	111.88 111.30 110.81 95.61 95.32 95.06 109.16 108.90 108.66 108.44 108.24 108.06	112.52 112.52 112.52 97.21 97.21 97.21 112.52 112.52 112.52 112.52 112.52 112.52

13, for dispositions occurring during calendar year 1991;

Rev. Rul. 92–101, 1992–2 C.B. 9, for dispositions occurring during calendar year 1992; Rev. Rul 93–83, 1993–2 C.B. 6, for dispositions occurring during calendar year 1993;

Rev. Rul. 94–71, 1994–2 C.B. 4, for dispositions occurring during calendar year 1994; and Rev. Rul. 95–83, 1995–2 C.B. 8, for dispositions occurring during calendar year 1995.

DRAFTING INFORMATION

The principal author of this revenue ruling is Jack Malgeri of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Malgeri at (202) 622-3040 (not a tollfree call).

Section 280G.—Golden Parachute Payments

Federal short-term, mid-term, and long-term rates are set forth for the month of January 1998. See Rev. Rul. 98–4, page 18.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted federal long-term rate is set forth

for the month of January 1998. See Rev. Rul. 98–4, page 18.

Section 412.—Minimum Funding Standards

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of January 1998. See Rev. Rul. 98–4, page 18.

A revenue procedure describes certain changes to the funding method used to determine the minimum funding standard for defined benefit plans for plan years beginning on or after January 1, 1998. See Rev. Proc. 98–10, page 35.

Section 415. — Limitations on Benefits and Contributions Under Qualified Plans

(Also § 417.)

Limitations on benefits and contri- butions. Questions and answers on the limitations on benefits and contributions under section 415 of the Code, as amended by the Uruguay Round Agreements Act, and taking into account the applicable provisions of the Small Business Job Protection Act of 1996, are set forth.