### Question
How does the law define qualified housing interest?


### Answer
Under *26 U.S.C. § 56*, **qualified housing interest** is defined as:

> interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued during the taxable year on indebtedness which is incurred in acquiring, constructing, or substantially improving any property which—


(A) is the principal residence (within the meaning of section 1034) of the taxpayer at the time such interest accrues, or


(B) is a qualified dwelling which is a qualified residence (within the meaning of section 163(h)(4))

#### Citation:
  - *26 U.S.C. § 56*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VI-ALTERNATIVE MINIMUM TAX**

