### Question
How is the "original issue discount" defined?


### Answer
The term **original issue discount** is defined in *26 U.S.C. § 1273* as follows -

> the excess (if any) of—



(A) the stated redemption price at maturity, over



(B) the issue price

#### Citation:
  - *26 U.S.C. § 1273*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART V-SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS > Subpart A-Original Issue Discount**

