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March 29, 2025
Question

Election under 266 to Capitalize Property Taxes

  • March 29, 2025
  • 1 reply
  • 0 views

What's the best way to get to a blank form to make an election to capitalize property taxes on vacant land?

    1 reply

    PatriciaV
    Employee
    April 3, 2025

    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)

     

     

     

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