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Sale of Second Home and Election 266

maughact
Level 3

I have a client that bought a second home.  Only used it a couple times.  Bought it in 2019 and sold it in 2020.  Made improvements and made a profit.  He forgot to give me his mortgage interest form for 2019.  Also, the property has high real estate taxes.  Is there a way to make a 266 election to capitalize the mortgage interest and real estate taxes in order to include these costs on Schedule D?

I know we can amend 2019 taxes to include the mortgage interest but is already at $10,000 for taxes on the Schedule A with him primary residence.  

I'm thinking no?  But would like some feedback.

Thanks,

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IRonMaN
Level 15

I'm thinking what you are thinking - no.

ACME Taxes, Tattoos, Tires and Tasmanian Devils - one free devil with every return.