Question

Claiming section 1.266-1 Election to Capitalize Carrying Costs, what form do I use after selling the land?

Forum|Forum|2 years ago
April 11, 2024
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Hello, I've been claiming section 1.266-1 every year now for a few years and I sold 2 of my 3 investment properties in 2023. Everything is properly documented for every year on all my returns. What tax form do I use now to claim the capitalization when I file? Is it on a schedule E? or something else, schedule E says its for rental properties. Is there something for investment properties? I did not rent them out, I bought them years ago, paid taxes on them, and now selling them for a profit.

M

Mike9241

you elected to capitalize costs which become part of your basis when you sell. you can not deduct the costs you elected to capitalize except as part of the cost of the property sold

sale of the land is reported on schedule D/form 8949