To make the election to capitalize taxes and carrying charges:
- From the Input Return tab, go to Other ⮕ Elections.
- Click on the blue Election in the upper right corner.
- Go to the Other tab on this screen.
- Scroll down to the Election to Capitalize Taxes & Carrying Charges section.
- Check the box labeled Capitalize taxes and carrying charges .
- Make any other applicable inputs in this section.
See IRC Regulation 1.266-1 Capitalize Taxes & Carrying Charges Election for more information.