topic How to claim public sidewalk repair cost. in Get your taxes done using TurboTax

How to claim public sidewalk repair cost.

Drew1 — Sat, 01 Jun 2019 00:34:08 GMT

This is what IRS website says -

Assessments for local benefits. You cannot deduct amounts you pay for local benefits that tend to increase the value of your property. Local benefits include the construction of streets, sidewalks, or water and sewer systems. You must add these amounts to the basis of your property.

You can, however, deduct assessments (or taxes) for local benefits if they are for maintenance, repair, or interest charges related to those benefits. An example is a charge to repair an existing sidewalk and any interest included in that charge.

Assessments would typically be included as part of your p...

AnnetteB — Sat, 01 Jun 2019 00:34:08 GMT

Assessments would typically be included as part of your property tax notice. If this is the case, then deduct as a property tax on your return.

If it is assessed for your main home, just include it in the box asking for property taxes paid for Your Main Home. If it is assessed for another property that you own, include it in the box asking for property tax for Other Property.

Re: How to claim public sidewalk repair cost.

ShannonBondoc — Wed, 03 Mar 2021 23:34:02 GMT

I received a notice from the City I live in that I could either pay the City to complete the sidewalk repair or hire my own contractor. For ease I decided to let the City due the work. I received a bill and paid them for the work. Since it was maintenance can I still deduct the expense? If so, where do I list this expense in Turbotax as it wasn't part of my Property Taxes?

Re: How to claim public sidewalk repair cost.

macuser_22 — Wed, 03 Mar 2021 23:42:34 GMT

@ShannonBondoc wrote:

I received a notice from the City I live in that I could either pay the City to complete the sidewalk repair or hire my own contractor. For ease I decided to let the City due the work. I received a bill and paid them for the work. Since it was maintenance can I still deduct the expense? If so, where do I list this expense in Turbotax as it wasn't part of my Property Taxes?

This post could be years old before Congress eliminated all miscellaneous deductions. Unless there is some state deduction, this cannot be claimed on a Federal tax return.

Re: How to claim public sidewalk repair cost.

Opus 17 — Wed, 03 Mar 2021 23:51:14 GMT

@ShannonBondoc wrote:

I received a notice from the City I live in that I could either pay the City to complete the sidewalk repair or hire my own contractor. For ease I decided to let the City due the work. I received a bill and paid them for the work. Since it was maintenance can I still deduct the expense? If so, where do I list this expense in Turbotax as it wasn't part of my Property Taxes?

If the property is a rental, the work might be a repair or an improvement, depending on what was done. Repairs are deductible against rental income, improvements must be depreciated.

If this was your personal home and not used as a rental or for business, then repairs are never deductible. Repairs are just things that responsible property owners are supposed to do to maintain their property values. If this was an improvement, it is not deductible on your tax return, but it can be added to the cost of your home when you sell, and may reduce any capital gains tax you owe at that time.

The difference between a repair and an improvement is that a repair restores the property to as-is or as-was condition, and does not improve the value of the property. An improvement, sometimes referred to as a betterment, makes the property better -- it makes the property worth more by adding value, or extending the useful life of the property or one of its major systems. Patching a hole in the roof is a repair because it only restores the property to as-was condition; replacing a 30 year old roof with a new roof is an improvement because it increases the market value of the property and extends the life of the roof system.

I suspect, if you had an existing sidewalk that was in bad shape, it was probably a repair, not an improvement. Although, if they dug it up, replaced the gravel base, and did a complete re-pour, it might be seen as an improvement.

It doesn't matter if you received a bill from the city, or even if it was included in your property tax bill, it is not deductible property taxes because it applies to your home only instead of providing a general benefit to all property owners in your city.

Re: How to claim public sidewalk repair cost.

Opus 17 — Wed, 03 Mar 2021 23:52:17 GMT

And FWIW, the original answer was also wrong. This was never a deductible property tax, before or after the tax reform law of 2018.