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also includes indebtedness secured by a qualified residence of
the taxpayer incurred in refinancing acquisition indebtedness.
Sec. 163(h)(3)(B).
"Home equity indebtedness" is indebtedness secured by a
qualified residence that is other than acquisition indebtedness.
Sec. 163(h)(3)(C)(i). Home equity indebtedness may not exceed
the fair market value of the qualified residence reduced by the
acquisition indebtedness, not to exceed $100,000. See sec.
163(h)(3)(C)(i) and (ii).
"Secured debt" is debt that is secured by an instrument such
as a mortgage or deed of trust: (a) That makes the interest of
the debtor in the qualified residence security for payment; (b)
under which, in the case of default, the residence could be
subjected to the satisfaction of the debt; and (c) that is
recorded or otherwise perfected under State law. Sec. 1.163-
10T(o)(1), Temporary Income Tax Regs., 52 Fed. Reg. 48417 (Dec.
22, 1987).
There is nothing in the record that shows that, before
October 30, 1996, petitioner produced any evidence of his
ownership interest in the family home. In the October 30, 1996,
letter petitioner's representative provided respondent with some
indirect evidence, copies of deeds of trust5 on which petitioner
5 An instrument in use in some States, including
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