Title 26 — Internal Revenue CodeRelease 119-73
§266 Carrying Charges
Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter B— Computation of Taxable Income › Part IX— ITEMS NOT DEDUCTIBLE › § 266
Summary
You can choose to add certain taxes and carrying charges on property to the property's cost instead of deducting them now. If you make this election under IRS rules, no current deduction is allowed for those amounts; they become part of your investment in the property instead.
Full Legal Text
Title 26, §266
Internal Revenue Code — Source: USLM XML via OLRC
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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Reference
Citations & Metadata
Citation
26 U.S.C. § 266
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73