Common use of Deduction upon repurchase Clause in Contracts

Deduction upon repurchase. (1) Ex- cept as provided in subparagraphs (2) and (3) of this paragraph, if bonds are issued by a corporation and are subse- quently repurchased by the corporation at a price in excess of the issue price plus any amount of discount deducted prior to repurchase, or (in the case of bonds issued subsequent to Feb. 28, 1913) minus any amount of premium re- turned as income prior to repurchase, the excess of the purchase price over the issue price adjusted for amortized premium or discount is a deductible ex- pense for the taxable year.

Deduction upon repurchase. (1) Ex- cept as provided in subparagraphs subparagraph (2) and (3) of this paragraph, if bonds are issued by a corporation and are subse- quently repurchased subsequently re- purchased by the corporation at a price in excess of the issue price plus any amount of original issue discount deducted de- ducted prior to repurchase, or (in the case of bonds issued subsequent to Feb. 28, 1913) minus any amount of premium re- turned returned as income in- come prior to repurchase, the excess of the purchase repurchase price over the issue price adjusted for amortized premium or deducted discount is a deductible ex- pense as interest for the taxable year.