Starr42
New Member

If we paid a Loudon County Facilities School Tax impact fee, Is it deductible & where do I file it?

 

Deductions & credits

No, it is not deductible.  All you can do is add it to the basis of your home, which in turn will reduce your gain, which may be taxable.

This, from the IRS' Publication 551, Basis of Assets:

The following items increase the basis of property.

  • The cost of extending utility service lines to the property.

  • Impact fees.

  • Legal fees, such as the cost of defending and perfecting title.

  • Legal fees for obtaining a decrease in an assessment levied against property to pay for local improvements.

  • Zoning costs.

  • The capitalized value of a redeemable ground rent.

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