Interest due on a construction loan incurred by the owner while a project is still under construction. The interest accrues until the project is ready to generate income at which point it is capitalized as part of a new lending arrangement by adding it to the cost basis of the project.
Related information about construction interest expense:
- Construction Interest Expense Definition | Investopedia
Any interest that is paid during the construction phase of a building or other tangible property. The interest may be incurred directly as the result of a construction ...
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Construction Interest Expense. Any interest ... Local Tax. An additional ... Robin Hood Effect. A phenomenon ... Section 1250. A section of the ... Revenue Officer ...
- What is construction interest expense? definition and meaning
Definition of construction interest expense: Interest due on a construction loan incurred by the owner while a project is still under construction. The interest ...
- What is Construction Interest Expense?
Dec 12, 2010 ... In the financing of a construction project, the interest that accumulates on a loan that finances the project is known as interest during ...
- Maximizing the interest expense deduction on a self-constructed ...
163(d)). Similarly, if the unimproved land itself is leased prior to commencing construction, interest expense will be investment interest. Once a taxpayer begins ...
- Services - Senate Construction Corporation - Serving New England
... start of construction, thus expediting the project completion and producing project cost savings to the owner in construction interest expense; Provide monthly ...
- Dominon Res., Inc. v. United States :: Federal Circuit :: US Courts of ...
US avoided if funds had not been expended for construction. Interest expense that could have been avoided includes interest costs incurred by reason of ...
- Interest Expense
Construction Interest Expense — Any interest that is paid during the construction ... Construction interest expense is treated differently than other types of …