original issue discount
Defined in 2 dictionaries — Case Law, U.S. Code
Definitions from Case Law
From 381 U.S. 54 - United States v. Midland-Ross Corp. · 1965Most cited · 188 citing opinions
Earned original issue discount serves the same function as stated interest, concededly ordinary income and not a capital asset; it is simply 'compensation for the use or forbearance of money.' Unlike the typical case of capital appreciation, the earning of discount to maturity is predictable and measurable, and is 'essentially a substitute for payments which § 22(a) expressly characterizes as gross income; thus it must be regarded as ordinary income.
United States Code
26 U.S.C. § 1273 — for purposes of this subpart
The term “original issue discount” means the excess (if any) of—
(A) the stated redemption price at maturity, over
(B) the issue price.
26 U.S.C. § 1288 — for purposes of this section
The term “original issue discount” has the meaning given to such term by section 1273(a) without regard to paragraph (3) thereof. In applying section 483 or 1274, under regulations prescribed by the Secretary, appropriate adjustments shall be made to the applicable Federal rate to take into account the tax exemption for interest on the obligation.
26 U.S.C. § 6049 — for purposes of this section
For purposes of this paragraph, the term “original issue discount” has the meaning given to such term by section 1273(a).