# 26 U.S.C. § 266: Carrying charges

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s266>. Cite pinpoints as 26 U.S.C. § 266(a)(1).

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.

## Regulations

- [Treas. Reg. § 1.266-1](/26/reg/1.266-1.md): Taxes and carrying charges chargeable to capital account and treated as capital items. (interprets § 266)

## Final rules

- [FR Doc. 94-31431](https://www.federalregister.gov/documents/1994/12/29/94-31431/capitalization-of-interest) (1994): Capitalization of Interest

## Leading cases

- [Foster v. Commissioner, 80 T.C. 34 (1983)](https://www.courtlistener.com/opinion/4705834/foster-v-commr/)
- [Estate of Stamos v. Commissioner, 55 T.C. 468 (1970)](https://www.courtlistener.com/opinion/4703046/estate-of-stamos-v-commissioner/)
- [Purvis v. Commissioner, 65 T.C. 1165 (1976)](https://www.courtlistener.com/opinion/4704135/purvis-v-commissioner/)

## Connections

Cites: none

Cited by: § 163 Interest; § 1016 Adjustments to basis

Derived from: 1939 § 24(a)(7)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 78
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834