Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

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Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

No, the excess cannot be carried forward. This type of deduction is not eligible for capitalization.

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Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

If you could do that it would be all over the newspapers and magazines in the section called "Tax filing Tips".

Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

No, the excess cannot be carried forward. This type of deduction is not eligible for capitalization.

Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

What is the pertinent section of the tax code?

Due to the 2018 federal deduction limit of $10,000 on property taxes, can I capitalize the excess? That way, my tax cost basis would go up leading to lower capital gains.

Yes, you can capitalize property taxes and insurance on the property, but there is a limitation on this. See IRS Reg. Section 1.266-1(b)(1)(i). If the property is not improved upon, you can elect capitalizing property taxes as carrying costs.

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