### Question
How does the law define acquisition cost?


### Answer
Under *26 U.S.C. § 143*, **acquisition cost** is defined as:

> the cost of acquiring the residence as a completed residential unit

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

