One Time Special Assessment for Personal Property Home

[Jalpha21]

"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?

[NCperson]

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.“

[Opus 17]

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.