- 11 -
2(...continued)
accrued during the taxable year on--
(i) acquisition indebtedness with respect to
any qualified residence of the taxpayer, or
(ii) home equity indebtedness with respect to
any qualified residence of the taxpayer.
For purposes of the preceding sentence, the
determination of whether any property is a
qualified residence of the taxpayer shall be made
as of the time the interest is accrued.
(B) Acquisition indebtedness.--
(i) In general.--The term "acquisition
indebtedness" means any indebtedness which--
(I) is incurred in acquiring,
constructing, or substantially improving
any qualified residence of the taxpayer,
and
(II) is secured by such residence.
* * * * * * *
(C) Home equity indebtedness.--
(i) In general.--The term "home equity
indebtedness" means 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.
(ii) Limitation.--The aggregate amount
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011