### Question
How does the law define stripped bond?


### Answer
Under *26 U.S.C. § 1286*, **stripped bond** is defined as:

> a bond issued at any time with interest coupons where there is a separation in ownership between the bond and any coupon which has not yet become payable

#### Citation:
  - *26 U.S.C. § 1286*
  - 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 D-Miscellaneous Provisions**

