net direct interest expense
Defined in 1 place of the United States Code.
For purposes of this section, the term "net direct interest expense" means, with respect to any market discount bond, the excess (if any) of—
Source
- 1994–present26 U.S.C. § 1277Internal Revenue Code · Deferral of interest deduction allocable to accrued market discount · for purposes of this section
For purposes of this section, the term “net direct interest expense” means, with respect to any market discount bond, the excess (if any) of—
(1) the amount of interest paid or accrued during the taxable year on indebtedness which is incurred or continued to purchase or carry such bond, over
(2) the aggregate amount of interest (including original issue discount) includible in gross income for the taxable year with respect to such bond.
Source
- 201326 U.S.C. § 1277Internal Revenue Code · Deferral of interest deduction allocable to accrued market discount · for purposes of this section