Second, the key to this question is to determine the end point of capitalization of borrowing costs. When the assets that meet the capitalization conditions are purchased, constructed or produced and reach the intended usable or saleable state, the capitalization of borrowing costs shall be stopped. Borrowing expenses incurred after the assets that meet the capitalization conditions reach the predetermined usable state shall be recognized as expenses at the time of occurrence and included in the current profits and losses.
III. The borrowing costs incurred after the capitalization is stopped shall be included in the current profits and losses, and shall be charged before tax according to the relevant provisions of the Enterprise Income Tax Law.
Fourth, in the supplementary question, "the fixed assets of the original loan did not fall on the enterprise account, but belonged to the boss personally" only showed that the capitalization of borrowing costs was in the state before it was used as paid-in capital, which had nothing to do with the company's current situation.
5. The reason for tax inference may be that the company's working capital loan is used to repay the previous boss's personal fixed assets loan, which has nothing to do with the company's current production and operation. This is a problem that needs to be overcome.
Vi. Regulations for the Implementation of the Enterprise Income Tax Law Article 37 The reasonable borrowing costs incurred by an enterprise in its production and business activities that do not need capitalization are allowed to be deducted. The company should communicate further in order to solve it.