# Original Issue Discount (OID): Formula, Uses, and Examples.

What is the Original Issue Discount (OID)?

The Original Issue Discount (OID) is the difference between the market value of a bond and the price at which it is issued. This discount is typically given to bonds that are sold below their face value, and is used to calculate the bond's interest payments.

What is the Original Issue Discount (OID) Formula?

The Original Issue Discount (OID) formula is used to calculate the interest payments on a bond that is sold at a discount to its face value. This formula takes into account the market value of the bond, the face value of the bond, and the time remaining until the bond matures.

What are the Uses of the Original Issue Discount (OID)?

The Original Issue Discount (OID) can be used to calculate the interest payments on a bond that is sold at a discount to its face value. This discount can also be used to reduce the amount of taxes that are owed on the bond's interest payments.

What are the Examples of the Original Issue Discount (OID)?

There are a few examples of the Original Issue Discount (OID). One example is a bond that is issued with a face value of \$1,000 but is sold for \$950. In this case, the OID would be \$50. Another example is a bond that is issued with a face value of \$1,000 but is sold for \$900. In this case, the OID would be \$100.

### How do I report a OID acquisition premium?

If you are reporting an acquisition premium on a fixed income security, you will need to include the following information:

-The security's CUSIP number
-The date of purchase
-The price paid per unit
-The number of units purchased
-The accrual period (if applicable)
-The yield to maturity (if applicable)

If you are reporting an acquisition premium on a variable income security, you will need to include the following information:

-The security's CUSIP number
-The date of purchase
-The price paid per unit
-The number of units purchased
-The accrual period (if applicable)
-The yield to maturity (if applicable)
-The security's current market value

##### What does OID stand for?

OID stands for Original Issue Discount. It is the difference between the par value of a bond and the price at which the bond is issued. The holder of a bond with OID pays income taxes on the OID as it accrues, even though no interest payments are made on the bond until it matures. How do I enter my OID on TurboTax? 1. Go to the "Federal Taxes" tab, then click on the "Wages & Income" tab.

2. Click on the "I'll choose what to work on" link.