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One Time Special Assessment for Personal Property Home

Jalpha21 — Sat, 30 Mar 2019 21:37:18 GMT

"Our HOA installed a new septic system this year and each house was responsible for part of the payment $300,000 overall or $4,000 per house. Is this deductible?" The $4,000? If so, where in Turbo Tax?

Re: One Time Special Assessment for Personal Property Home

NCperson — Sat, 30 Mar 2019 22:57:12 GMT

See page 16... top of middle column special assessments can be capitalized and depreciated

https://www.irs.gov/pub/irs-pdf/p527.pdf

“You can’t deduct special assessments you pay to a condominium management corporation for improvements. However, you may be able to recover your share of the cost of any improve- ment by taking depreciation.“

Re: One Time Special Assessment for Personal Property Home

Opus 17 — Sun, 31 Mar 2019 04:59:40 GMT

If this is your personal residence, you can't deduct anything. This is a capital improvement and adds to the cost basis of the home, which may reduce your capital gains when you sell, but is not deductible now.

If this is a rental property, this is treated as an improvement, which is added to your cost basis and then depreciated along with the rest of the property, as a rental expense, generally over 27.5 years.