§ 1288. Treatment of original issue discount on tax-exempt obligations
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/usc/title-26/section-1288A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 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.
(2)Tax-exempt obligation The term “tax-exempt obligation” has the meaning given to such term by section 1275(a)(3).
(3)Short-term obligations In applying this section to obligations with maturity of 1 year or less, rules similar to the rules of section 1283(b) shall apply.
(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.)
Connections3 cite this · traces to 2
Cited by 3 sections
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8 references not yet in our index
- Pub. L. 98–369, div. A, title I, § 41(a)
- 98 Stat. 553
- Pub. L. 100–647, title I, § 1006(u)(3)
- 102 Stat. 3427
- Pub. L. 100–647
- Pub. L. 99–514
- section 1019(a) of Pub. L. 100–647
- section 44 of Pub. L. 98–369
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§ 1288
Treatment of original issue discount on tax-exempt obligations
Fed. Reg.×2
Stat.×1
Pub. L.Pub. L. 98–369, div. A, title I, § 41(a)
Stat.98 Stat. 553
Pub. L.Pub. L. 100–647, title I, § 1006(u)(3)
Stat.102 Stat. 3427
Pub. L.Pub. L. 100–647
Cites 10 · showing 7Cited by 3 across 2 sources