cash method debt instrument

(2)For purposes of paragraph (1), the term “cash method debt instrument” means any qualified debt instrument if— (A)the stated principal amount does not exceed $2,000,000, (B)the lender does not use an accrual method of accounting and is not a dealer with respect to the property sold or exchanged, (C)would have applied to such instrument but for an election under this subsection, and (D)an election under this subsection is jointly made with respect to such debt instrument by the borrower and lender.

Source

26 USC § 1274A(c)(2)


Scoping language

For purposes of paragraph
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