Company: KEY-PI
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001193125-25-036859
Chunk: 133

Company: KEYCORP /NEW/
Filing Date: 2025-02-26
Form: 424B5
Chunk 133
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ing to include original issue discount in income
currently, any gain realized on the sale or retirement of the short-term note will be ordinary income to the extent of the original issue discount accrued on a straight-line basis (unless an election is made to accrue the original issue discount
under the constant-yield method) through the date of sale or retirement. A U.S. holder who is not required and does not elect to accrue original issue discount on a short-term note will be required to defer deductions for interest on borrowings
allocable to short-term notes in an amount not exceeding the deferred income until the deferred income (including acquisition discount) is realized. For this purpose, acquisition discount is the excess, if any, of the note’s stated redemption
price at maturity over the U.S. holder’s basis in the note.

For purposes of determining the amount of original issue discount
subject to these rules, all interest payments on a short-term note are included in the short-term note’s stated redemption price at maturity. A U.S. holder may elect to determine original issue discount on a short-term note as if the short-term
note had been originally issued to the U.S. holder at the U.S. holder’s purchase price for the short-term note. This election shall apply to all obligations with a maturity of one year or less acquired by the U.S. holder on or after the first
day of the first taxable year to which the election applies and may not be revoked without the consent of the IRS.

Market Discount

If a U.S. holder purchases a note other than a discount note for an amount that is less than its issue price, or the U.S. holder purchases
discount note for an amount that is less than its adjusted issue price as of the purchase date, i.e., revised issue price, the amount of the difference will be treated as “market discount” for United States federal income tax purposes,
unless the difference is less than a specified de minimis amount. Under the market discount rules of the Code, a U.S. holder will be required to treat any partial principal payment on or any gain on the sale, retirement or other taxable disposition
of the note as ordinary income to the extent that any market discount has accrued with respect to the note and was not previously included in income by the U.S. holder

S-82

(pursuant to an election by the U.S. holder to include any market discount in income as it accrues) at the time of such disposition.

Market discount is accrued