§266 — Carrying charges
16 cases·5 followed·11 cited—31% support
Statute Text — 26 U.S.C. §266
No deduction shall be allowed for amounts paid or accrued for such taxes and carrying charges as, under regulations prescribed by the Secretary, are chargeable to capital account with respect to property, if the taxpayer elects, in accordance with such regulations, to treat such taxes or charges as so chargeable.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.266-1 Taxes and carrying charges chargeable to capital account and treated as capital items
- Treas. Reg. §Treas. Reg. §1.266-1(a) §1.266-1(a)
- Treas. Reg. §Treas. Reg. §1.266-1(b) §1.266-1(b)
- Treas. Reg. §Treas. Reg. §1.266-1(c) Paragraph (b)(1)(iv) of this section is effective as determined by the Commissioner.
- Treas. Reg. §Treas. Reg. §1.266-1(d) §1.266-1(d)
- Treas. Reg. §Treas. Reg. §1.266-1(e) Allocation.
- Treas. Reg. §Treas. Reg. §1.266-1(i) In the case of unimproved and unproductive real property: Annual taxes, interest on a mortgage, and other carrying charges.
16 Citing Cases
Under section 266, section 263A(f), and section 189 (repealed for years after December 31, 1986), mortgage interest on improved real property is only capitalized during a period of construction or further improvement. Sec. 189(e)(2)(A) (repealed for years after December 31, 1986); sec. 1.266-1(b)(ii), Income Tax Regs.; sec. 1.263A-8(d)(3), Income Tax Reg