Assessments made against real estate for the purpose of funding new street lights are not deductible in the year paid but rather should be added to the cost basis of the property.

Question

Quizplus · Accepted Answer

Assessments made for funding new street lights are considered to be capital expenditures and should be added to the cost basis of the property. They cannot be deducted in the year paid.

Assessments Made Against Real Estate for the Purpose of Funding