### Question
How does NORMAL TAXES AND SURTAXES define qualified real property business indebtedness?


### Answer
Under *26 U.S.C. § 108*, **qualified real property business indebtedness** is defined as:

> indebtedness which—


(A) was incurred or assumed by the taxpayer in connection with real property used in a trade or business and is secured by such real property,


(B) was incurred or assumed before January 1, 1993, or if incurred or assumed on or after such date, is qualified acquisition indebtedness, and


(C) with respect to which such taxpayer makes an election to have this paragraph apply

#### Citation:
  - *26 U.S.C. § 108*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

