Acquisition debt means the original loan you took out to purchase the home.
If you purchased a home for 300,000 and put 20% down, your acquisition debt for that home loan would be 240,000.
On the date it was last secured by your home refers to the amount left on that original loan if the home was refinanced. If the original loan was 240,000 and you paid it down to 200,000 then refinanced it for 260,000 the acquisition debt for this loan is 200,000. That's how much the new loan PAID for the old loan.
IRS Pub 936
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
