itonewbie
Level 15
04-03-2020
10:02 AM
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§266 is an annual election. It doesn't have to be made in the initial year placed in service, only that it be made with the original return for the relevant tax year.
If the taxpayer will get no tax benefit for the carrying charges such as real estate taxes (and mortgage interest), it would make sense to elect capitalization so long as the land is unimproved and unproductive.
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