ProConnect HelpIntuit HelpIntuit

IRC Regulation 1.266-1 Capitalize Taxes & Carrying Charges Election in ProConnect Tax

by ProConnect Tax Online Updated 7 months ago

A taxpayer who owns unimproved and unproductive real estate can elect to capitalize annual taxes, interest on a mortgage, and other carrying charges.

  • The election must be made annually.
  • The election requires a statement in the taxpayer's return describing the property and the expenses to which the election applies.
  • If the property produces income in a given year, the election isn't available.
  1. Go to Input Return  Other  Elections
  2. Select the Other tab.
  3. Scroll down to Election to Capitalize Taxes & Carrying Charges section.
  4. Check the box Capitalize taxes and carrying charges [266].
  5. Complete the other 3 inputs in this section.
  6. To create multiple elections, click the + at the top of the screen to add a tab.
  1. Go to Input Return Other Election
  2. Select the Elections in the top right.
  3. Select the Other tab.
  4. Scroll down to Election to Capitalize Taxes & Carrying Charges section.
  5. Check the box Capitalize taxes and carrying charges [266].
  6. Complete the other 3 inputs in this section.
  7. To create multiple elections, select the + at the top of the screen to add a tab.
  1. Go to Input Return Other  Elections
  2. Select Election in the top right of the input screen.
  3. Select the Other tab.
  4. Scroll down to Election to Capitalize Taxes & Carrying Charges section.
  5. Check the box Capitalize taxes and carrying charges [266].
  6. Complete the other 3 inputs in this section.
  7. To create multiple elections, click the + at the top of the screen to add a tab.
  1. Go to Input Return  Other  Elections
  2. Select Election in the top right of the input screen.
  3. Select the Other tab.
  4. Scroll down to Election to Capitalize Taxes & Carrying Charges section.
  5. Check the box Capitalize taxes and carrying charges [266].
  6. Complete the other 3 inputs in this section.
  7. To create multiple elections, click the + at the top of the screen to add a tab.

In all modules, the election is included with the e-filed return and listed in the e-file summary for verification.

To view the election:

  1. Go to Check Return Forms.
  2. Select Elections.

See IRC Regulation 1.266-1, Capitalize Taxes & Carrying Charges Election for more information.

ProConnect Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads