Hello Everyone, this is a first time post for me and I am looking for input on a topic I am split on... I work for a development company that builds apartments. Throughout construction we utilize a construction loan which we pay loan origination fees on an interest is capitalized throughout construction. My question is regarding the proper treatment of the loan origination fees on the construction loan at the end of construction when permanent financing is secured. Would the loan origination fees specific to the construction loan be capitalized along with the building or would it be deducted in the period which the loan is paid off by permanent financing? These are not small dollar amounts so I would like to get some feedback to see if the approach I would like to take seems appropriate. Thanks in advance for your input.
