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Can you tell me more about this expense? what was the abatement service for.
The abatement is on property tax. Instead of paying the regular property tax, the city gives an abatement to encourage buying properties in re-development areas. However, the city requires payment known as "abatement service liability charges." I am wondering if the payments for this is tax deductible in NJ state.
thank you for the clarification. These types of charges are not considered tax deductible. However, if htey are for business use property, then it is included as a cost of doing business....a business expense.
If it is for primary residents or second homes, then they are added to the cost basis.