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Podatki z Galt: Expenditures related to external financing of residential development projects – TAX EFFECTS OF ACCOUNTING TREATMENT


The method of recognizing the tax deductible costs of the expenditure related to the external financing of housing development projects depends on their accounting treatment.

The inclusion of paid interest as “production / work in progress” results in the fact that the interest can only be recognized as the tax costs when the premises are sold – these are direct costs. On the other hand, the recognition of interest paid as “current activity” results in recognition the tax deductible costs on the date of incurrence – these are costs other than directly related to revenue (so-called indirect costs).

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