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Tax Glossary: Acquisition Indebtedness

Posted by McDonald & Osborne Posted on Oct 12 2015

Acquisition indebtedness: This is the technical term that Congress uses for what most of us call home mortgage debt, on which the interest is deductible. To qualify, the debt must be used to buy, build or improve your principal residence or second home and must be secured by the property. The interest paid on up to $1 million of acquisition indebtedness is deductible if you itemize deductions.