Page 77 - Interest Income - Individuals Handbook

Debt instrument bought after

original issue

 If you buy a debt instrument with de minimis OID at a

premium, the de minimis OID isn't includible in income.
If you buy a debt instrument with de minimis OID at a

discount, the discount is reported under the market
discount rules.
 See Market Discount Bonds in chapter 1 of Pub. 550.

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