Can Florida Non-Ad Valorem Assessments be included in Federal tax filing?

[Opus 17]

For what, exactly?

[Carl]

If it's included on the property tax bill you received from your county, it's already included in your total property tax payment you made in 2017. Otherwise, you need to provide more details. Not all assessments are taxes, and therefore are not deductible on the federal return. We need details.

[tennisset]

Villages Fire District and Unit 141 Spec  Asmt-Maint

[maglib]

Some taxes and fees you can't deduct on Schedule A include federal income taxes, social security taxes, transfer taxes (or stamp taxes) on the sale of property, homeowner's association fees, estate and inheritance taxes, and service charges for water, sewer, or trash collection. Refer to the Form 1040 (PDF) and Publication 17 for more taxes you can't deduct.

Non-ad-valorem assessments are based on the improvement or service cost allocated to a property  and are levied on a benefit unit basis, rather than on value.  they are NOT considered property taxes for Schedule A although some exceptions may apply (see comments below).  They may be expenses for other items though like rental property or businesses.

Many states and counties also impose local benefit taxes for improvements to property, such as assessments for streets, sidewalks, and sewer lines. You can't deduct these taxes. However, you can increase the cost basis of your property by the amount of the assessment.

[Opus 17]

@maglib
"Non-ad-valorem assessments are based on the improvement or service cost allocated to a property  and are levied on a benefit unit basis, rather than on value.  they are NOT considered property taxes for Schedule A."

This is incorrect, which is why I was waiting for input from the customer.

Real property taxes can be deductible, even if not ad valorem, if they provide a general community benefit and not a property-specific or "local" benefit.  For example, a $50 charge per house for community ambulance service is a deductible property tax, while $50 for streetlights (that is only charged on streets with street lights) is a property-specific benefit and is not deductible.  (However, taxes charged to maintain or repair existing local benefits are also an allowable deduction.)

This has been a matter of dispute between the IRS and California over "Mello-Roos" taxes, which are a way for communities to raise money without breaking the state property tax cap.  The California FTB was denying deductions for Mello-Roos taxes but the IRS has stated in a letter that they can be deductible if they pay for a general community benefit.  Eventually the FTB agreed to accept the IRS position and stop challenging the deduction.

Personal property taxes must be ad valorem, but the same limit does not exist for real property taxes.  Rather, "Assessments on real property owners, based other than on the assessed value of the property, may be deductible if they are levied for the general public welfare by a proper taxing authority at a like rate on owners of all properties in the taxing authority’s jurisdiction, and if the assessments are not for local benefits (unless for maintenance or interest charges)."

<a rel="nofollow" target="_blank" href="https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/home/what-is-mello-roos-and-can-i-dedu...>

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-wd/12-0018.pdf">https://www.irs.gov/pub/irs-wd/12-0018.pdf</a>

[maglib]

Thanks

To fall under State and Local Personal Property Taxes
Deductible personal property taxes are those based only on the value of personal property.   Since ad-valorem are not based on the value of the property, they can not be deducted here.  

but I stand corrected as they may fall under State & Local Real Estate taxes.
Deductible real estate taxes are generally any state, local, or foreign taxes on real property levied for the general public welfare. The charge must be uniform against all real property in the jurisdiction at a like rate.