Company: KEY-PI
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001193125-25-036859
Chunk: 136

Company: KEYCORP /NEW/
Filing Date: 2025-02-26
Form: 424B5
Chunk 136
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 the note and the U.S. holder’s adjusted tax basis in the note; provided, however that to the extent
any gain represents accrued qualified stated interest or accrued original issue discount not previously included in gross income, such gain would be treated as ordinary interest income. A U.S. holder’s adjusted tax basis in a note generally
will be an amount equal to the U.S. holder’s initial investment in the note increased by the amount of any original issue discount included in income (and accrued market discount, if any, if the U.S. holder has elected to include market
discount in income) and decreased by the amount of any payments made with respect to the notes (other than payments of qualified stated interest) and the amount of any amortizable bond premium offset against qualified stated interest with respect to
the note. Except as described above (under “—Market Discount” and “—Contingent Payment Debt Instruments”) and below (under “—Foreign Currency Notes”), such gain or loss generally will be long term capital
gain or loss if the U.S. holder has held the note for more than one year. Long-term capital gains of individuals currently are eligible for preferential rates of taxation. The deductibility of capital losses is subject to limitations.

Tax on Net Investment Income

A
U.S. holder that is an individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax, will be subject to a 3.8% tax on the lesser of (1) the U.S. holder’s “net investment income”
for the relevant taxable year and (2) the excess of the U.S. holder’s modified adjusted gross income for the taxable year over a certain threshold (which in the case of individuals will be between $125,000 and $250,000, depending on the
individual’s circumstances). A U.S. holder’s net investment income generally will include its interest income and its net gains from the disposition of notes, unless such interest income or net gains are derived in the ordinary course of
the conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). If you are a U.S. holder that is an individual, estate or trust, you are urged to consult your tax advisors regarding the
applicability of this net investment income tax to your income and gains in respect of your investment in the notes.

Foreign Currency Notes

Cash Basis Holders

A U.S. holder
who uses the cash