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Income Tax Planning
Chapter 4: Gross Income from Personal and Investment Activities/ORIGINAL ISSUE DISCOUNT (OID): EXAMPLE
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 4: Gross Income from Personal and Investment Activities

ORIGINAL ISSUE DISCOUNT (OID): EXAMPLE

01.Core Concepts

• On January 1st of this year, Goldilocks purchases a 30-year zero coupon government bond at a market rate of 8% paying $99.38. How much interest income does she report this year? Income = $99.38 x 0.08 = $7.95 New Basis = $99.38 + 7.95 = $107.33 (at year end)