### Question
How is the "acquisition indebtedness" defined?


### Answer
The term **acquisition indebtedness** is defined in *26 U.S.C. § 163* as follows -

> any indebtedness which—



(I) is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer, and



(II) is secured by such residence

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

