Interest

6 Months Ended

Mar. 31, 2021

Interest capitalized during the three and six months ended March 31, 2021 and 2020 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:


	Three Months Ended March 31,				Six Months Ended March 31,
in thousands	2021		2020		2021		2020
Capitalized interest in inventory, beginning of period	$	119,148	$	137,010	$	119,659	$	136,565
Interest incurred	19,345		22,271		39,247		43,827

Interest expense not qualified for capitalization and included as other expense (a)	(969)		(1,928)		(2,569)		(3,370)
Capitalized interest amortized to home construction and land sales expenses (b)	(24,110)		(22,660)		(42,923)		(42,329)
Capitalized interest in inventory, end of period	$	113,414	$	134,693	$	113,414	$	134,693

(a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and development projects in progress but excludes land held for future development and land held for sale.

(b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.