Acquisition Debt

Description and Definition of Acquisition Debt

Acquisition Debt is debt used to buy, build, or substantially improve a principal residence or second home and which generally qualifies for a full interest expense deduction. This is the technical term that Congress uses for what most of us call home mortgage debt on which the interest is deductible. The interest on up to $1 million of acquisition indebtedness is deductible.

Resources

See Also

Further Reading

• Acquisition Debt in the West's Tax Law Dictionary
• Acquisition Debt in “A Dictionary of Taxation”