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This accounting term denotes an expense for idle or nonproductive property that is incurred for the purpose of carrying the property. The income tax law permits a taxpayer to capitalize instead of deducting currently as an expense taxes and interest chargeable to unimproved and unproductive real property. Also, a taxpayer can capitalize otherwise deductible expenses incurred during the period of construction or improvement of realy property, and taxes and interest directly related to machinery and equipment purchased, up to the date they are put to productive use. In addition, if the finance or service charge on an installment purchase of personal property is separately stated but the actual interest charge cannot be ascertained, such as charge is referred to as a carrying charge. And a portion of the charge is deductible as interest under a special formula.