Issue Price [Internal Revenue Code] Law and Legal Definition

Pursuant to 26 USCS § 1273 (b) [Title 26 Internal Revenue Code; 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], the term Issue Price means, “for purposes of this subpart [26 USCS §§ 1271 et seq.]--

(1) Publicly offered debt instruments not issued for property. In the case of any issue of debt instruments--

(A) publicly offered, and

(B) not issued for property,

the issue price is the initial offering price to the public (excluding bond houses and brokers) at which price a substantial amount of such debt instruments was sold.

(2) Other debt instruments not issued for property. In the case of any issue of debt instruments not issued for property and not publicly offered, the issue price of each such instrument is the price paid by the first buyer of such debt instrument.

(3) Debt instruments issued for property where there is public trading. In the case of a debt instrument which is issued for property and which--

(A) is part of an issue a portion of which is traded on an established securities market, or

(B) (i) is issued for stock or securities which are traded on an established securities market, or

(ii) to the extent provided in regulations, is issued for property (other than stock or securities) of a kind regularly traded on an established market,

the issue price of such debt instrument shall be the fair market value of such property.

(4) Other cases. Except in any case--

(A) to which paragraph (1), (2), or (3) of this subsection applies, or

(B) to which section 1274 [26 USCS § 1274] applies,

the issue price of a debt instrument which is issued for property shall be the stated redemption price at maturity.

(5) Property. In applying this subsection, the term "property" includes services and the right to use property, but such term does not include money.”