### Question
Can you define what shared equity financing agreement means?


### Answer
**Shared equity financing agreement** is defined as the following in *26 U.S.C. § 280A*:

> an agreement under which—



(i) 2 or more persons acquire qualified ownership interests in a dwelling unit, and



(ii) the person (or persons) holding 1 or more of such interests—



(I) is entitled to occupy the dwelling unit for use as a principal residence, and



(II) is required to pay rent to 1 or more other persons holding qualified ownership interests in the dwelling unit

#### Citation:
  - *26 U.S.C. § 280A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

