### Question
Can you define what acquisition indebtedness means?


### Answer
**Acquisition indebtedness** is defined as the following in *26 U.S.C. § 163*:

> 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**

