### Question
Can you define what debt-financed property means?


### Answer
**Debt-financed property** is defined as the following in *26 U.S.C. § 2031*:

> 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**

