### Question
How is the "debt-financed property" defined?


### Answer
The term **debt-financed property** is defined in *26 U.S.C. § 2031* as follows -

> any property with respect to which there is an acquisition indebtedness (as defined in clause (ii)) on the date of the decedent's death

#### Citation:
  - *26 U.S.C. § 2031*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 11-ESTATE TAX > Subchapter A-Estates of Citizens or Residents > PART III-GROSS ESTATE**

