### Question
How is the term construction period carrying charges defined?


### Answer
The term **construction period carrying charges** is defined in *26 U.S.C. § 312* as the following:

> all—


(i) interest paid or accrued on indebtedness incurred or continued to acquire, construct, or carry property,


(ii) property taxes, and


(iii) similar carrying charges,


  

to the extent such interest, taxes, or charges are attributable to the construction period for such property and would be allowable as a deduction in determining taxable income under this chapter for the taxable year in which paid or incurred

#### Citation:
  - *26 U.S.C. § 312*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart B-Effects on Corporation**

