Hi!
Holding costs, including property taxes, interest, etc, are capitalized during the development stage of real estate projects. Should capitalized property taxes be accrued for the respective year or capitalized as incurred the following year?
**Most property tax payments are made in January the following year.
Under GAAP, are costs always capitalized as incurred or should you accrue capitalized costs to have a property tax liability on the books at year-end?
Thank you!
Holding costs, including property taxes, interest, etc, are capitalized during the development stage of real estate projects. Should capitalized property taxes be accrued for the respective year or capitalized as incurred the following year?
**Most property tax payments are made in January the following year.
Under GAAP, are costs always capitalized as incurred or should you accrue capitalized costs to have a property tax liability on the books at year-end?
Thank you!
