From Reg. 1.266-1(b)
"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..."
Rocket: You might be correct but I was relying upon "otherwise expressly deductible." The Reg. then goes on to enumerate interest, taxes etc. My thought was because the original interest as described in the post was not deductible, then it would not fit "otherwise expressly deductible."
By the way, I did not infer from Dave's post construction was in progress. If so, then perhaps yes - still vacillating though.
"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..."
Rocket: You might be correct but I was relying upon "otherwise expressly deductible." The Reg. then goes on to enumerate interest, taxes etc. My thought was because the original interest as described in the post was not deductible, then it would not fit "otherwise expressly deductible."
By the way, I did not infer from Dave's post construction was in progress. If so, then perhaps yes - still vacillating though.
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