removeps-groups[at]yahoo.com wrote:
- quote -

No. I see nothing nothing in (b)(1)(ii) that mentions "real
property taxes" of a vacant home held for investment.

- quote -

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On Feb 9, 4:02 pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

If you own a house but don't rent it, live in it -- that is, it is
purely for investment -- then does it satisfy 1.266-1(b)(i)?

Though from reading 1.266, it looks like 1.266-1(b)(2) allows you
carry capital costs for real property. Maybe I read it wrong, but
here goes:

http://edocket.access.gpo.gov/cfr_20...cfr1.266-1.htm

(b) Taxes and carrying charges. (1) The taxpayer may elect, as
provided in paragraph (c) of this section, to treat the items
enumerated
in this subparagraph which are otherwise expressly deductible under
the
provisions of Subtitle A of the Code as chargeable to capital account
either as a component of original cost or other basis, for the
purposes
of section 1012, or as an adjustment to basis, for the purposes of
section 1016(a)(1). The items thus chargeable to capital account are:
(i) In the case of unimproved and unproductive real property:
Annual
taxes, interest on a mortgage, and other carrying charges.
(ii) In the case of real property, whether improved or unimproved
and whether productive or unproductive:
(a) Interest on a loan (but not theoretical interest of a
taxpayer
using his own funds),
(b) Taxes of the owner of such real property measured by
compensation paid to his employees,
(c) Taxes of such owner imposed on the purchase of materials, or
on
the storage, use, or other consumption of materials, and
(d) Other necessary expenditures, paid or incurred for the
development of the real property or for the construction of an
improvement or additional improvement to such real property, up to
the
time the development or construction work has been completed. The
development or construction work with respect to which such items are
incurred may relate to unimproved and unproductive real estate
whether
the construction work will make the property productive of income
subject to tax (as in the case of a factory) or not (as in the case of
a
personal residence), or may relate to property already improved or
productive (as in the case of a plant addition or improvement, such
as
the construction of another floor on a factory or the installation of
insulation therein).

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removeps-groups[at]yahoo.com wrote:
- quote -


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<lotax[at]hotmail.com> wrote in message
news:1ffcd066-8a9f-43df-844e-aa12d49ed192[at]u13g2000yqg.googlegroups.com...
- quote -

IRC 56(b)(1)(ii). As real property taxes are not deductible under AMT, the
pro-rated share of real property taxes charged at acquisition or sale (i.e.
in escrow) are addtional costs chargable to the capital account per IRC
263(a)(1) and/or 263A(a)(2)(B). It's treated just like any other fee or
cost in the transaction that's not currently deductible in computing basis
or disposition on sale.

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- quote -

I don't think it says that; should it?

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On Feb 4, 3:27�pm, "D. Stussy" <s...[at]bde-arc.ampr.org> wrote:
- quote -

*love* to know how to do this!!! Tell me how!!

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On Feb 4, 11:50 am, Katie <katiej_1...[at]yahoo.com> wrote:

- quote -

Where does it say that IRC 266 applies only to undeveloped land?

http://www.taxalmanac.org/index.php/...rrying_charges

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Katie <katiej_1958[at]yahoo.com> wrote:

- quote -

Another thing to consider is if your Schedule A deduction was
effectively limited by AMT, you might be able to, in the following
tax year, exclude some of your state tax refund as income.

(This issue has been discussed here in the past, and there
were multiple opinions.)

Steve

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"NadCixelsyd" <nadcixelsyd[at]aol.com> wrote in message
news:f2c9aeb1-896c-49ee-ac95-9c91e1d30131[at]q30g2000prq.googlegroups.com...
- quote -

Yes, but only for AMT purposes. This means that you will have a different
basis for AMT than for the regular tax. When you sell the property, you
need to remember this fact.

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On Feb 4, 11:00*am, NadCixelsyd <nadcixel...[at]aol.com> wrote:
- quote -


No.

However, if the property is undeveloped land, you can elect to
capitalize the taxes, interest and other carrying charges under IRC
Sec. 266.

Katie in San Diego

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Ipay the AMT. My real estate taxes are not deducted. May I add the
tax to the cost basis of my property?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >