PROPERTY OWNERS' ASSOCIATION

ARE SPECIAL ASSESSMENTS TAX DEDUCTIBLE?
or
Can I Get the Government to Pay for Part of This?

The Internal Revenue Service and the courts have held that assessments for the repair and resurfacing of streets are deductible as real property taxes, while assessments for lengthening or widening the streets are not deductible. If the members vote for some form of a road renewal plan, such a plan would contemplate a renewal and resurfacing of roads and does not contemplate a lengthening or widening of the roads.

A special assessment for road renewal would appear to be tax deductible; however, the POA cannot give tax advice, and each member with questions with respect to the impact of this on their tax returns should consult with their tax advisors.

---

Return to Road Renewal Menu

Return to Home Page