Quote:
Originally Posted by Bill-n-Brillo
Sooooooooooooo......if I interpret the above properly, the amount of the bond adds to the cost basis of the property and is considered to be a non-deductible amount on your taxes, which would make sense. The annual interest charges, however, sound as though they are deductible if you itemize your deductions. You'd have to figure out how much of your annual bond payment went to principal and what part went to interest - the county should be able to provide those numbers. I question, though, how much (if any) of the line item on your county tax statement for 'Special Assessment - Maint" would be considered deductible given that part of it is for maintenance and part of it is simply for operations.
Or am I missing something somewhere in the translation?
Bill
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The interest, as cited in Pub 530, would be interest charged on REPAIRS, not the ORIGINAL assessment. Sorry......
(I'm an Enrolled Agent, and have prepared individual tax returns for 23 years)