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brba92tax
New Member

MANDATORY SEWER INSTALLATION COST

We live in a neighborhood that had a sewer extension installation that was mandatory.  If you did not connect or pay the apportionment amount of $6,450.28 for the sewer installation.  In addition to the the $6,450.28 my property resides in an area that is subject to System Development and this was and additional $2,178 charge.  If you didn't pay it in full at time of connection you would be charged interest at 4.5%.  So I paid a total of $8928.28 to our Regional Water Resource Agency.  Failure to do so would result in a lien being put on your property.  I also had an additional $2800, for a plumber to connect the sewer to my home.  Is any portion of this tax deductible?

1 Reply
MinhT1
Expert Alumni

MANDATORY SEWER INSTALLATION COST

No, all these costs are not tax deductible. Their can be added to the cost basis of your property, which will help reduce capital gains when you sell the property in the future.

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