NFS fee deductible?

donald14225 · ‎June 3, 2019

We own a cabin on National Forest Service (NFS) land and are charged a recreational residence permit fee each year. The NFS states that the fee amount changes annually with real estate value changes. Each cabin is assigned to a Fee Tier table with 11 tiers based on value. Please advise if this fee is tax deductible?

hbl3973 · ‎June 3, 2019

The fee is not tax deductible but separate property taxes are. From http://articles.latimes.com/2007/mar/18/realestate/re-forest18

Owners pay an annual fee to the Forest Service as well as property taxes and hold a permit for a fixed period of time -- generally 20 years -- during which future terms may be renegotiated. The annual fee is determined by a complicated formula based on 5% of the market value of the lot and then adjusted to reflect the absence of significant property rights normally associated with fee-simple ownerships and the public's right to have access to any portion of the lot on which the cabin is not located.

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hbl3973 · ‎June 3, 2019

The fee is not tax deductible but separate property taxes are. From http://articles.latimes.com/2007/mar/18/realestate/re-forest18

Owners pay an annual fee to the Forest Service as well as property taxes and hold a permit for a fixed period of time -- generally 20 years -- during which future terms may be renegotiated. The annual fee is determined by a complicated formula based on 5% of the market value of the lot and then adjusted to reflect the absence of significant property rights normally associated with fee-simple ownerships and the public's right to have access to any portion of the lot on which the cabin is not located.