### Question
How does Capital Gains and Losses define original issue discount?


### Answer
Under *26 U.S.C. § 1273*, **original issue discount** is defined as:

> 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**

