98 STAT. 542
PUBLIC LAW 98-369—JULY 18, 1984 "(i) DEBT INSTRUMENT.—The term 'debt instrument' includes an investment unit. "(ii) ADJUSTED ISSUE PRICE.—
"(I) IN GENERAL.—The adjusted issue price of the old debt instrument is its issue price, increased by the portion of any original issue discount previously includible in the gross income of any holder (without regard to subsection (a)(6) or (b)(4) of section 1272 (or the corresponding provisions of prior law)).
Ante, p. 533.
"(II)
Pos«, pp. 556,654.
SPECIAL
RULE
FOR
APPLYING
SECTION
163(e).—For purposes of section 163(e), the adjusted issue price of the old debt instrument is its issue price, increased by any original issue discount previously allowed as a deduction. "(b) TREATMENT OF BORROWER IN THE CASE OF CERTAIN LOANS FOR PERSONAL USE.— "(1) SECTIONS 1274 AND 483 NOT TO APPLY.—In the case of the
Ante, p. 538. Post, p. 553.
obligor under any debt instrument given in consideration for the sale or exchange of property, sections 1274 and 483 shall not apply if such property is personal use property. "(2) ORIGINAL ISSUE DISCOUNT DEDUCTED ON CASH BASIS IN CERTAIN CASES.—In the case of any debt instrument, if—
Posf, pp. 556,654.
"(A) such instrument— "(i) is incurred in connection with the acquisition or carrying of personal use property, and "(ii) has original issue discount (determined after the application of paragraph (1)), and "(B) the obligor under such instrument uses the cash receipts and disbursements method of accounting, notwithstanding section 163(e), the original issue discount on such instrument shall be deductible only when paid. "(3) PERSONAL USE PROPERTY.—For purposes of this subsection, the term 'personal use property' means any property substantially all of the use of which by the taxpayer is not in connection with a trade or business of the taxpayer or an activity described in section 212. The determination of whether property is described in the preceding sentence shall be made as of the time of issuance of the debt instrument. "(c) INFORMATION REQUIREMENTS.— "(1) INFORMATION REQUIRED TO BE SET FORTH ON INSTRUMENT.—
"(A) IN GENERAL.—In the case of any debt instrument having original issue discount, the Secretary may by regulations require that— "(i) the amount of the original issue discount, and "(ii) the issue date, be set forth on such instrument. "(B)
SPECIAL RULE FOR INSTRUMENTS NOT PUBLICLY OF-
FERED.—In the case of any issue of debt instruments not publicly offered, the regulations prescribed under subparagraph (A) shall not require the information to be set forth on the debt instrument before any disposition of such instrument by the first buyer. "(2) INFORMATION REQUIRED TO BE SUBMITTED TO SECRETARY.—
In the case of any issue of publicly offered debt instruments having original issue discount, the issuer shall (at such time and
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