### Question
How is the "average indebtedness percentage" defined?


### Answer
The term **average indebtedness percentage** is defined in *26 U.S.C. § 246A* as follows -

> the percentage obtained by dividing—


(A) the average amount (determined under regulations prescribed by the Secretary) of the portfolio indebtedness with respect to the stock during the base period, by


(B) the average amount (determined under regulations prescribed by the Secretary) of the adjusted basis of the stock during the base period

#### Citation:
  - *26 U.S.C. § 246A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VIII-SPECIAL DEDUCTIONS FOR CORPORATIONS**

