Max W Posted May 26, 2020 Report Share Posted May 26, 2020 I seem to remember many years ago, that if taxes were paid on land and SD taken, that the taxes could be added to the basis of the land. Does this sound right to anyone? Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted May 26, 2020 Report Share Posted May 26, 2020 Yes, available for taxes on raw land only. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted May 26, 2020 Report Share Posted May 26, 2020 Copied from The Tax Advisor: How to make the IRC Sec 266 election? You can make the IRC Sec 266 election when you are filing with original return for the year for which the election is made with the following statement: “For tax year ………., taxpayer hereby elects under Code Section 266 and IRS Regulations 1.266-1 to capitalize, rather than deduct, property taxes, mortgage interest, insurance expenses, and other miscellaneous carrying costs on the property at ……………………………… Remember the Section 266 Election is an annual election available for Investment Property. Quote Link to comment Share on other sites More sharing options...
Max W Posted May 27, 2020 Author Report Share Posted May 27, 2020 If itemizing, it can be deducted on Sch A Line 6 and Not subject to SALT. Quote Link to comment Share on other sites More sharing options...
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