Here is what you do with the acquisition premium. You can reduce your OID income by the acquisition premium. See the definition and allowed actions below.
Acquisition premium.
Acquisition premium is the excess of a debt instrument’s adjusted basis immediately after purchase, including purchase at original issue, over the debt instrument’s adjusted issue price at that time. A purchaser reduces any OID income by the acquisition premium, as discussed under Information for Owners of OID Debt Instruments, later.
If the purchaser’s adjusted basis exceeds the total of all amounts payable under the debt instrument (other than qualified stated interest) after the date of purchase, then the debt instrument has premium instead of acquisition premium. See Premium, later.