Capitalize taxes, interest, and insurance on unimproved land — convert ordinary to LTCG.
§266 lets owners of unimproved / non-productive real estate ELECT to capitalize property taxes, mortgage interest, and insurance into basis instead of deducting them. When the land later sells, those costs reduce long-term capital gain (taxed at 15–20%) instead of offsetting ordinary income (37%). Net arbitrage of 17–22 points per dollar of carry cost, and unlocks deductions that would otherwise be lost to SALT cap / passive-loss limits.
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Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.