View all text of Subpart D [§ 1286 - § 1288]
§ 1288. Treatment of original issue discount on tax-exempt obligations
(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
(2) Tax-exempt obligation
(3) Short-term obligations
(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.)