---
kind: "section"
citation: "26 U.S.C. § 266"
title: "26"
title_heading: "Internal Revenue Code"
number: "266"
heading: "Carrying charges"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/266"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter B — Computation of Taxable Income"
  - "Part IX — Items Not Deductible"
---

# §266. Carrying charges


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](/usc/26/317.md?p=a), if the [taxpayer](/usc/26/1313.md?p=b) elects, in accordance with such regulations, to treat such taxes or charges as so chargeable.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 78; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

## Notes

### Editorial Notes

### Amendments

1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.