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Publication 1212 2003 Tax Year

Publication 1212
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Table of Contents

    Table 1. Explanation of Section I Column Headings

        1 2 3 4 5 6 7 8
                                                 
      Name of
    Issuer     		  CUSIP
    Number     		  Issue
    Date     		  Maturity
    Date     		  Issue Price
    (Percent of
    Principa
    Amount)     		  Annual
    Stated
    Interest
    Rate     		  Total
    OID
    to
    1/1/02     		  Daily OID per $1,000
    of Maturity Value
    for Each Accrural Period

    2002 1st2002 2nd &2003 2nd
    Period 2003 1st Period     		  OID per
    $1,000 of Maturity Value
    for Calendar Year
    2002 2003     		 
      XYZ Corp   123456AA   08/01/84   08/01/04   90.0   13.0   68.47   .028399 .032534 .037270   11.00   12.60  
    1. CUSIP Number— The CUSIP number identifies the debt instrument. The first six digits of the CUSIP number represent the issuer and the last two digits identify the particular issue. The ninth, or check digit, is omitted for most debt instruments issued before 1985.   same month and day as the date of issue of the instrument. In the above example, the first accrual period shown for 2002 for XYZ bond is 8/1/01-7/31/02. The part of this accrual period that falls in 2002 is from 1/1/02-7/31/02. For each $1,000 principal amount of the bond, the OID is .028399 each day you held the bond during this accrual period. Similarly, the part of the second accrual period in 2002 is from 8/1/02-12/31/02. The OID is .032534 for each day you held the bond during this accrual period. The OID for each day you held a debt instrument in 2003 is determined in the same manner, using the daily OID applicable to the part of each accrual period falling in 2003. If you bought the debt instrument after original issue and paid an acquisition premium, see Debt Instruments Issued After July 1, 1982, and Before 1985, earlier, for more information.
    2. Issue Date—This is the date of original issue, which is generally the date on which the instrument was first sold to the public at the issue price.  
    3. Maturity Date—This is the date the debt instrument matures and is redeemable at its full principal amount. For example, if the bond of XYZ Corp. above has a principal amount of $1,000, the holder will be paid $1,000 when he or she redeems it on August 1, 2004 (maturity date).  
    4. Issue Price (Percent of Principal Amount)—In general, the issue price is the initial offering price at which a substantial amount of the debt instruments are sold to the public. In the above example, XYZ bonds were first offered to the public at $900. Since they have a principal amount of $1,000, the issue price expressed as a percent of principal amount is 90.   NOTE. For corporate debt instruments issued after 1984 (listed in Section I–B), the columns for the daily OID amounts are increased to include the number of 6-month accrual periods that apply to these instruments during 2002 and 2003. The 2002 OID is determined by using the daily OID for the 3 periods for the year. Although each accrual period is 6 months long, a 6-month period may extend into the next calendar year.
    5. Annual Stated Interest Rate—This is the rate of annual interest payments. In the above example, XYZ bond has a stated interest rate of 13% and pays $130 a year for each $1,000 principal amount of the bond. 8. OID for 2002 and 2003 (Per $1,000 of Maturity Value)—The amount appearing in the 2002 column is the total OID if you held the instrument the entire year or the part it was outstanding. For debt instruments entirely called or maturing in 2002, the amount is computed to the date of call or maturity. In the above example, if you held XYZ bond for all of 2002, the OID is $11.00 for each $1,000 principal amount of the bond. If you did not hold the bond for the entire year, use the daily OID for each accrual period in 2002. (See Figuring OID, earlier, for more detailed information.) Similarly, the amount appearing in the 2003 column is the total OID if you held the instrument for the entire year or the part it was outstanding. If you bought the instrument after original issue and paid an acquisition premium, see Debt Instruments Issued After July 1, 1982, and Before 1985, earlier, for more information.
    6. Total OID to 1/1/02—This shows the total OID accumulated on the debt instrument from the date of original issue to 1/1/02. (This information is not available for all instruments listed.)  
    7. Daily OID in 2002 and 2003—This is the OID for each day you held the debt instrument during the accrual periods falling in 2002 and 2003. (The daily OID for the second accrual period in 2002 and the first accrual period in 2003 are identical.) For corporate debt instruments issued after July 1, 1982, and before 1985, an accrual period is a 1-year period beginning on the  

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