How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
586644
Type Your Tax Question Here...
Ed Johnson is online now
A new question is answered every 9 seconds

Are abatement service charge liability payments tax

Customer Question

Are abatement service charge liability payments tax deductible when filing NJ state tax?
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

Can you tell me more about this expense? what was the abatement service for.

Customer: replied 8 years ago.

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.

Expert:  Ed Johnson replied 8 years ago.

DearCustomer

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.