Explore commonly used personal finance terms.
Acquisition debt is a loan or mortgage taken out to purchase an asset, such as property or a business. This type of debt is common in real estate transactions and business acquisitions. The interest paid on acquisition debt may be tax-deductible, depending on jurisdiction and usage. Properly managed acquisition debt allows individuals or businesses to acquire valuable assets that can generate future income, though it also entails repayment responsibilities that must be considered in financial planning.
