@Brigantine117 wrote:
If I'm increasing my cost basis by adding the assessment, wouldn't that increase my capital gain?
No, it would serve to decrease your capital gain when you sell your property.
Example:
Purchase price: $100,000 = Cost basis
Special Assessment: $10,000
Adjusted basis = $110,000 (cost basis plus special assessment)
Sales price: $150,000
Gain: $40,000 (Sales price of $150,000 less $110,000 adjusted basis)
