### Question
Can you define what floor plan financing indebtedness means?


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

> indebtedness—


(i) used to finance the acquisition of motor vehicles held for sale or lease, and


(ii) secured by the inventory so acquired

#### 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**

