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Acquisition Debt

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Acquisition Debt
Debt incurred to acquire, construct, or improve the taxpayer's principal or secondary residence.


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CBRE I Melody provided acquisition debt financing on behalf of Berman Development Co.
163(h)(3)(B) defines acquisition debt as any debt incurred in acquiring, constructing or substantially improving a qualified residence and secured by it.
The court then evaluated whether section 304 applied to the transaction and if the acquisition debt exception applied.
 
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