Not all real estate related items are deductible on your
taxes.  This page details the items which are not
deductible as real estate taxes.







Charging for services
An itemized charge for services to specific property or people is not a tax,
even if the charge is paid to the taxing authority.  You cannot deduct the
charge as a real estate tax is if:
 

A unit fee for the delivery of service (such as a $5 fee charged for every 1,000 gallons of water you use). A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection). A flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance).

Assessment for Local Benefits
You cannot deduct amounts you pay for local benefits that tend to increase
the value of your property.  Local benefits include the construction of streets,
sidewalks, or water and sewer systems.  You must add these amounts to the
basis of your property.

You can, however, deduct assessments (or taxes) for local benefits if they are
for maintenance, repair, or interest charges related to those benefits.  An
example is a charge to repair an existing sidewalk and any interest included
in that charge. 

If only party of the assessment is for maintenance, repair, or interest charges,
you must be able to show the amount of that part to claim the deduction.  If
you cannot show what part of the assessment is for maintenance, repair, or
interest charges, you cannot deduct any of it.


Transfer Taxes (or Stamp Taxes)
You cannot deduct transfer taxes and similar taxes and charges on the sale
of a personal home.  If you are the buyer and you pay them, include them in
the cost basis of the property.  If you are the seller and you pay them, they
are expenses of the sale and reduce the amount realized no the sale.


Homeowners Association Assessments
Assessments paid to a local homeowner's association for the purpose of
maintaining the common areas of the residential project and for promoting the
recreation, health, and safety of the residents are not deductible as real
property taxes.

You cannot deduct these assessments because the homeowners association,
rather than a state or local government, imposes them


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