### Question
Can you define what portfolio interest means?


### Answer
**Portfolio interest** is defined as the following in *26 U.S.C. § 871*:

> 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—


(i) is not in registered form, and


(ii) is described in section 163(f)(2)(B)

#### Citation:
  - *26 U.S.C. § 871*
  - 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 A-Nonresident Alien Individuals**

