[Bonk]

Does anyone know if a special assessment such as a fee for a local sewer system on your property taxes is tax deductible? I learned that it is deductible if it’s imposed for “repairs or maintenance,” but does anyone know what this exactly entails? Thanks.

FAR: 85
BEC: 84
AUD: 74, 83
REG: ??

[OlintoJr]

I was under the impression that it is NOT deductible.

I am not sure where you heard that it was deductible, but I'm assuming it may have been on a rental property… Where you can deduct for “repairs or maintenance”, but I think on personal property this is not the case.

FAR - 11/30/14 -79
AUD - 2/19/15 -86
BEC - 4/09/15 -86
REG - 11/30/15 -87

I'M DONE! ITS OVER! WOOOOOOO!!!!!!!

[EuroAddict]

I don't believe it is. I do recall a similar Q about a light on lamp post in street being added to increase security and then the light breaks. The breakage was deductible.

But I wouldn't sweat it.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[tuanxn]

This is from IRS publication 527:

“Assessments for local improvements. Assessments for items which tend to increase the value of property, such as streets and sidewalks, must be added to the basis of the property. For example, if your city installs curbing on the street in front of your house, and assesses you and your neighbors for its cost, you must add the assessment to the basis of your property. Also add the cost of legal fees paid to obtain a decrease in an assessment levied against property to pay for local improvements. You cannot deduct these items as taxes or depreciate them.

However, you can deduct assessments for the purpose of maintenance or repairs or for the purpose of meeting interest charges related to the improvements. Do not add them to your basis in the property.”

So yes, you are correct. I know what problem you're referring to, but I've never seen this type of information mentioned elsewhere.

[Bonk]

Awesome! Maintenance and repairs = Deduct. All other assessments = Add to property basis. Thanks guys!

FAR: 85
BEC: 84
AUD: 74, 83
REG: ??

[Author]

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