### Question
What is the definition of qualified expenses and interest?


### Answer
The definition of **qualified expenses and interest** is as follows in *26 U.S.C. § 267*:

> any expense or interest incurred by the partnership with respect to low-income housing held by the partnership but—



(i) only if the amount of such expense or interest (as the case may be) is unconditionally required to be paid by the partnership not later than 10 years after the date such amount was incurred, and



(ii) in the case of such interest, only if such interest is incurred at an annual rate not in excess of 12 percent

#### Citation:
  - *26 U.S.C. § 267*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

