Publication 598 |
2001 Tax Year |
Average Acquisition Indebtedness
One of the factors in determining unrelated debt-financed income is
the average acquisition indebtedness of the debt-financed property.
The term "average acquisition indebtedness" means the average
amount of outstanding principal debt during the part of the tax year
that the organization holds the property.
Average acquisition indebtedness is computed by determining how
much principal debt is outstanding on the first day in each calendar
month during the tax year that the organization holds the property,
adding these amounts, and dividing the sum by the number of months
during the year that the organization held the property. Part of a
month is treated as a full month in computing average acquisition
indebtedness.
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