### Question
What is the definition of portfolio interest?


### Answer
The definition of **portfolio interest** is as follows in *26 U.S.C. § 881*:

> any interest (including original issue discount) which would be subject to tax under subsection (a) but for this subsection and which is described in any of the following subparagraphs:


#### (A) Certain obligations which are not registered


Interest which is paid on any obligation which is described in section 871(h)(2)(A)

#### Citation:
  - *26 U.S.C. § 881*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart B-Foreign Corporations**

