Company: SCE-PL
Filing Date: 2025-09-08
Form Type: SF-1
Source: 0001193125-25-198426
Chunk: 158

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-09-08
Form: SF-1
Chunk 158
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 payable at a fixed rate, will be includible in income by a U.S. Holder when it is received, in the case of a U.S. Holder using the cash receipts and disbursements method of tax accounting, or as it accrues, in the case of a U.S. Holder using the accrual method of tax accounting. Original Issue Discount One or more tranches of bonds may be issued with original issue discount ( OID). Notwithstanding a U.S. Holder’s usual method of tax accounting, any OID on a tranche of bonds will be includible in the U.S. Holder’s income when it accrues in accordance with the constant yield method, which takes into account the compounding of interest, in advance of receipt of the cash attributable to such income. In general, a tranche of bonds will be treated as issued with OID if the “stated redemption price at maturity” of that tranche of bonds (ordinarily, the initial principal amount of that tranche of bonds) exceeds the “issue price” of that tranche of bond (ordinarily, the price at which a substantial amount of that tranche of bonds is sold to the public) by more than a statutorily defined “de minimis” amount. Sale or Retirement of Bonds On a sale, exchange or retirement of a bond, a U.S. Holder will have taxable gain or loss equal to the difference between the amount received by the U.S. Holder and the U.S. Holder’s tax basis in the bond. A U.S. Holder’s tax basis in a bond is the U.S. Holder’s cost, subject to adjustments such as increases in basis for any OID previously included in income and reductions in basis for principal payments received previously. Gain or loss will generally be capital gain or loss, and will be long-term capital gain or loss if the bond was held for more than one year at the time of disposition. If a U.S. Holder sells the bond between interest payment dates, a portion of the amount received will reflect interest that has accrued on the bond but that has not yet been paid by the sale date. To the extent that amount has not already been included in the U.S. Holder’s income, it will be treated as ordinary interest income and not as capital gain. Long-term capital gains of non-corporateU.S. Holders may be eligible for reduced rates of taxation. The deductibility of capital losses by both corporate and non-corporateU.S. Holders is subject to limitations. Tax Consequences