26 USC 1288 - Treatment of original issue discount on tax-exempt obligations

U.S Code last checked for updates: May 19, 2024

§ 1288.

Treatment of original issue discount on tax-exempt obligations

(a)

General rule

Original issue discount on any tax-exempt obligation shall be treated as accruing—

(1)

for purposes of section 163, in the manner provided by section 1272(a) (determined without regard to paragraph (7) thereof), and

(2)

for purposes of determining the adjusted basis of the holder, in the manner provided by section 1272(a) (determined with regard to paragraph (7) thereof).

(b)

Definitions and special rules

For purposes of this section—

(1)

Original issue discount

(2)

Tax-exempt obligation

(3)

Short-term obligations

(Added Pub. L. 98–369, div. A, title I, § 41(a), July 18, 1984, 98 Stat. 553; amended Pub. L. 100–647, title I, § 1006(u)(3), Nov. 10, 1988, 102 Stat. 3427.)

cite as: 26 USC 1288