### Question
What is the definition of home equity indebtedness?


### Answer
The definition of **home equity indebtedness** is as follows in *26 U.S.C. § 163*:

> any indebtedness (other than acquisition indebtedness) secured by a qualified residence to the extent the aggregate amount of such indebtedness does not exceed—



(I) the fair market value of such qualified residence, reduced by



(II) the amount of acquisition indebtedness with respect to 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**

