(1) for purposes of section 163, in the manner provided by (determined without regard to paragraph (7) thereof), and
(2) for purposes of determining the adjusted basis of the holder, in the manner provided by (determined with regard to paragraph (7) thereof).
(1) Original issue discount
The term “original issue discount” has the meaning given to such term by without regard to paragraph (3) thereof. In applying section 483 or 1274, under regulations prescribed by the Secretary, appropriate adjustments shall be made to the applicable Federal rate to take into account the tax exemption for interest on the obligation.
(2) Tax-exempt obligation
The term “tax-exempt obligation” has the meaning given to such term by .
(3) Short-term obligations
In applying this section to obligations with maturity of 1 year or less, rules similar to the rules of shall apply.