Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
02-04-2018 09:30 AM
My neighborhood was annexed by the city and several years later they came in with "improvements". These were to replace deteriorating water pipes. At that time, they also added sewer pipes as our neighborhoods are on septic tanks. This came with a price tag of $6K assessed to all properties within the given "improvement" area. I believe that this is a tax deduction, but can't really find out any info on it.
I now pay yearly with interest (am allowed 10 years to pay off). This amounts to about $900-$1,000/year. Gets less as years go by.
02-13-2018 07:09 PM
According to the tax rule instructions for itemized deductions, tax assessments that are for making improvements in the neighborhood, such as building a new structure or making a replacement like replacing old pipes, are not tax deductible. Any interest paid on these improvement assessments are not tax deductible as well.
If you have any other questions, I'll be glad to help.
Tax Research Specialist