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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29525
Experience:  Taxes, Immigration, Labor Relations
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I am thinking about taking out a loan with YGRENE which is a

Customer Question

I am thinking about taking out a loan with YGRENE which is a state and federally funded program in Ca.. Your payments are made annually through your property taxes and is listed on your property taxes as a Mello-Roos clean energy tax. The YGRENE website boost that both the principle and interest are tax deductible on both state and federal taxes. Is this true, can I deduct both the principle and interest as a Mello-Roos tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Here is IRS position

https://www.irs.gov/pub/irs-wd/12-0018.pdf

California Mello-Roos and other assessments, concludes that those assessments may, depending on the facts and circumstances, be deductible as real property taxes even though they are not imposed on an ad valorem basis.

Assessments on real property owners, based other than on the assessed value of the property, 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).

Expert:  Lev replied 1 year ago.

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