26 U.S.C. § 266 — Carrying charges

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 50 words · no verdicts yet

in plain englishAI-generated · not legal advice

Taxpayers can choose to treat certain taxes and carrying charges as part of a property's cost instead of a deduction. The Secretary's regulations decide which taxes and charges qualify, and how to make the choice. Once elected this way, no tax deduction is allowed for those amounts.

This section lets a taxpayer choose how to treat certain taxes and "carrying charges" tied to property. Normally these amounts might be deducted. But if the taxpayer elects — following regulations the Secretary prescribes — to treat the taxes or carrying charges as part of the property's capital account (its cost, for tax purposes), then no deduction is allowed for them. Which taxes and charges qualify for this treatment is decided by the Secretary's regulations. The election itself must also follow those regulations.

the actual law source: uscode.house.gov ↗public domain

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.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 78; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1976Amended · Pub. L. 94-455 · 90 Stat. 1834

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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