I don't have any solutions but just want to say that I'm in the same boat and extremely disappointed. Disappointed that turbo tax doesn't suggest that you do this. Disappointed that it doesn't have the facilities to do it and efile if you happen to know you need to.
It's been screwing me on this for years now and I just finally realized, as I believe everything @TJRINGER said is correct.
TaxAct does support this. I'm not excited about switching after having years of history in turbotax. I'm considering it though.
Capitalize Carrying Charges IRC Section 266
