Assertion: debt instrument | /r/HasProperty | issued with oid
Facets:
Source sentences:
text: The rule requiring the holder of a debt instrument issued with OID to include the OID in gross income as it accrues applies to stripped bonds and coupons acquired after July 1, 1982.
text: The debtor (or "issuer") of a debt instrument issued with OID has long been allowed to amortize the amount of the OID as a deductible expense over the life of the instrument; in effect, a portion of the instrument's stated principal amount has been recharacterized, from the issuer's perspective, as interest expense and thus accrued over the term of the instrument.
text: Prior to 1969, however, the holder of a debt instrument issued with OID was not required to include any portion of the OID in income until the holder disposed of the instrument; at that time, all or a portion of the holder's gain was characterized as ordinary income, rather than capital gain, reflecting the OID that had accrued while the holder held the debt instrument.
text: If the debt instrument is issued with OID, taxpayers should include in their gross income the appropriate amount of accreted OID in “an amount equal to the sum of the daily portions of the original issue discount for each day during the taxable year on which such holder held such debt instrument” (Sec. 1272(a)(1)).