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wludkey
New Member

Can I deduct the congestion relief fee tax on the sale of my home in virginia

This is a sizeable tax.  I figure there must be a way to deduct this

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bwa
Alumni
Alumni

Can I deduct the congestion relief fee tax on the sale of my home in virginia

It is not deductible but it would be a cost of sale that either increases the cost (if you receive a Form 1099-S) or reduces the sales price if you don't.  That will reduce any gain.  However, as the gain may not be taxable anyway, it might not matter.

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5 Replies
bwa
Alumni
Alumni

Can I deduct the congestion relief fee tax on the sale of my home in virginia

It is not deductible but it would be a cost of sale that either increases the cost (if you receive a Form 1099-S) or reduces the sales price if you don't.  That will reduce any gain.  However, as the gain may not be taxable anyway, it might not matter.

wludkey
New Member

Can I deduct the congestion relief fee tax on the sale of my home in virginia

Unfortunately that special fee came up as a surprise at closing.  Was hoping to recoup some of it.  Tricky devil's those VA state legislators calling it a fee and not a tax...Which it clearly is. Thanks much.
bwa
Alumni
Alumni

Can I deduct the congestion relief fee tax on the sale of my home in virginia

Even if they called it a tax, it would be deductible.  To be deductible, it must be an annual tax assessed based on the value of property.  Many taxes don't meet that criteria and are not deductible.

Still, like you, I would hate a surprise at closing,.
NewGuy
New Member

Can I deduct the congestion relief fee tax on the sale of my home in virginia

It is not deductible, it is considered a fee and not a tax.  Fees are not deductible on your return but can be applied to your cost basis to avoid any potential capital gains.  I feel your pain, I had to pay it too this year!

wludkey
New Member

Can I deduct the congestion relief fee tax on the sale of my home in virginia

Thanks NewGuy696.  I figured as much but was holding out hope 🙂
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