To amend the Internal Revenue Code of 1986 to provide an election for an overpayment in lieu of a basis increase where indebtedness secured by property has original issue discount and is held by a cash method taxpayer.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow a seller who has reacquired real property to elect to treat indebtedness secured by such property as an overpayment of tax in lieu of a basis increase if: (1) such debt has original issue discount; and (2) the seller used the cash receipts and disbursements method of accounting.…