The Chief Counsel seems to be stating here that (MR) assessments may be deductible IF
… they are levied for the general public welfare by a proper taxing authority at a like rate on owners of all properties in the taxing authority’s jurisdiction, and if the assessments are not for local benefits (unless for maintenance or interest charges)…
MR isn’t levied “on all properties in the taxing authority’s jurisdiction.” It’s only levied on the properties within CFD’s in which the bonds have not yet been retired.
In addition, MR assessments in CA ARE for local benefits, not “maintenance” because the local jurisdictions (city/county) maintain the public lands within the CFD’s.
However, some of the MR payments service interest charges.
Without further direction from the IRS/FTB, this issue seems like it could be a quagmire for affected taxpayers.[/quote]
BG, you really don’t like to be wrong do you?
Come on. You’re trying argue you are right despite the facts to the contrary and trying to pick a minute wording in the document when clearly it indicates that Mello R is deductible and will be deductible until the forseeable future. You’re not an accountant (neither and I) but I’ve definitely have checked with many accountants who have also confirmed this…
“might” is a loosey goosey word. Hell, I *might* win the Powerball lottery….
I think you missed this statement from the IRS.. Here it is again bold and emphasize for you too…
However, § 1.164-4(b)(1) permits a deduction for assessments to provide local
benefits to the extent that the taxpayer can show they were imposed to repair, maintain,
or meet interest charges for such benefits.
Seriously, it’s ok to be wrong sometimes…We’re all wrong sometimes…
