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INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421.
     2. But in order to create an indebtedness, there must be an actual liability at the time, either to pay then or at a future time. If, for example, a person were to enter and become surety for another, who enters into a rule of reference, he does not thereby become a debtor to the opposite party until the rendition of the judgment on the award. 1 Mass. 134. See Creditor; Debt; Debtor.

References in periodicals archive ?
163(h)(3)(A) permits taxpayers to deduct interest paid or accrued during a tax year on acquisition indebtedness or home equity indebtedness for a qualified residence, which is defined by Sec.
Under the first interpretation, acquisition indebtedness means all indebtedness, regardless of amount, incurred to acquire, construct or substantially improve a qualified residence.
The IRS found that the taxpayers had deducted interest on an amount of indebtedness greater than that allowed under the limits in Sec.
The remaining $249,530 of accrued interest was added to the total outstanding principal balance of the Company's indebtedness to Harman.
108 to provide an eleetion for the exclusion of diseharge of indebtedness income related to qualified real property business indebtedness.
Therefore, it may be possible to argue that the indebtedness is issued for the services provided by the participant; as a result, the interest income is not OID and is not required to be included in a cash basis taxpayer's income until paid.
The Company, through the consent solicitation, is requesting an increase in the amount of indebtedness it can have outstanding at any one time under the Indenture by $125 million and additional flexibility in its ability to incur indebtedness.
The failure to pay interest when due, after a 30 day grace period, or the acceleration of other indebtedness by the holders thereof, would constitute an event of default under Anchor's senior secured notes and permit the holders to accelerate the maturity of the senior secured notes.
94-11, this election must be made by checking a new box on the December 1993 revision of Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
whether the indebtedness was incurred or assumed related to real property used in a trade) is made at the partnership level--not by the individual partners.
The Company intends to use the net proceeds from the offering to repay outstanding indebtedness under its revolving credit facility, and to the extent any net proceeds remain, for general corporate purposes which may include the repayment or reduction of its other indebtedness, capital expenditures, working capital requirements and acquisitions.
87-15 provides that cash-method taxpayers required to deduct points paid over the period of the indebtedness can allocate the points paid ratably over the period of the indebtedness, if the following requirements are met: