Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I don't interpret that paragraph of the code too literally - because almost every tax could be said to increase the value of the property assessed. A general assessment that makes the county a nicer place to live increases the value of the property. A general assessment that pays for road improvements, or better schools, or flood control, or a whole host of different things all could increase the value of the property. But that's not the point of this paragraph.

It's to keep from disguising an improvement to your property as a tax assessment, and trying to create a current tax deduction for what should be a capital improvement.

Thanks, Peter, that's exactly what I wanted to hear. I was thinking the same thing even as I was typing my previous responses, but I couldn't figure out what, then, was the intent of 164(c)(1). Now I understand your view of it, and I'm willing to take that view, and defend it, if it becomes necessary. (Not because the extra $ in deducting 100% of the Mello Roos is that much more, but because it's so much easier than trying to get the % due to interest every year. That's ridiculous.)

Thanks again,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.