Construction in progress is not included in FAE170, Schedule G if the property (real or personal) is not being used by the taxpayer in whole or in part. If a company is expanding and building additional facilities, this property is not included until it is used by the taxpayer. Once federal depreciation begins on property, it is deemed to have been placed into service and can never again be considered construction in progress. Also, if a company builds houses for others, the property must be included in Schedule G, usually as inventory.
Reference: Tenn. Code Ann. § 67-4-2108(a)(2).