Prepaid special assessment

[MANDAN]

If the special assessments were for repair and maintenance, if you prepaid this special assessment in 2015, can you deduct it all in 2015?

[Burke]

Are you talking about rental property?

[MANDAN]

No. Principal home.

[Burke]

You can deduct these like real estate taxes in the year paid. Unless they were assessed by an HOA, in which case they are not deductible at all. Only if assessed by a govt agency.

[ATSMAN]

You can deduct these like real estate taxes in the year paid. Unless they were assessed by an HOA, in which case they are not deductible at all. Only if assessed by a govt agency.

Correct and be careful if the HOA sends the bill along with the tax/management fee in one statement. I had a client whose HOA sent a semi-annual bill that included the Govt. tax plus HOA fees and special assessments. So when I asked her how much her property taxes were she told me the total amount until I questioned the amount?

It is much preferable if they actually show you the bill.

[MANDAN]

YES. He went to the county assessor's office and paid the amount left on the balance.