Election under 266 to Capitalize Property Taxes

There is a blank statement form available in TurboTax Desktop (and TurboTax Business) using Forms Mode. Note: you will need to file by mail in order to include this user-generated form.

Click the Forms icon in the TurboTax header. In the left column, click Open Form, then type in "blank form." Click on the form to open it in the large window. You can now type in the statement you need to include with your return.

Example for capitalizing property taxes (form lines are not numbered😞

Line 1: ELECTION TO CAPITALIZE CARRYING COSTS

Line 2: For the tax year 20XX, taxpayer hereby elects under Code Section 266

Line 3: and IRS Regulations 1.266-1 to capitalize, rather than deduct, the

Line 4: following carrying costs incurred with respect to 

Line 5: [describe property] located at [property location]

Line 6: XXX County AZ APN #XXX-XX-XXX-XX 3.5ac Lot 

Line 6, column 2: $235 (rounded)

Line 7: XXX County AZ APN #XXX-XX-XXX-XX 2.5ac Lot

Line 7, column 2: $123 (rounded)