Tuesday, March 12, 2013
IRS: California Fire Prevention Fees Are Not Deductible Property Taxes Under § 164
Office of Chief Counsel, IRS Memorandum 2013-10-029 (Jan. 14, 2013) (released Mar. 8, 2013):
Issue: May California residents deduct the Fire Prevention Fee they may pay on their federal income tax returns as a real property tax deduction under section 164 of the Internal Revenue Code and § 1.164-4 of the Income Tax Regulations?
Conclusion: California residents may not deduct the Fire Prevention Fee as a real property tax deduction because (i) the fee is not a tax under California or federal law (ii) the fee is not levied at a like rate, (iii) the fee is not imposed throughout the taxing authority's jurisdiction, and (iv) the fee is assessed only against specific property to provide a local benefit
http://taxprof.typepad.com/taxprof_blog/2013/03/irs-california-.html
Comments
When you already have some of the highest property taxes in the nation, it shouldn't surprise anyone that California will not allow you to deduct this fee.
Posted by: Paul Krogman | Mar 22, 2013 10:52:29 AM
Justice Roberts would rule that the fee is a tax.
Posted by: Woody | Mar 12, 2013 8:59:38 AM