Jeff’s Carlsbad Blog for First Time Home Buyers

Are Mello Roos Tax Deductible?

Posted in Due Diligence,Financial,Homeownership,Taxes by Jeff Dowler on January 22, 2007

I have recently had a couple of buyers ask are Mello Roos are tax deductible, like property taxes?

The answer is not simple. And since I am NOT a tax professional nor can I give you tax advice, let me provide some information that may help.

If you are not clear on what Mello Roos are, see my previous post on “What are Mello Roos?” Generally if there are Mello Roos fees on a property it will be noted in the MLS. But it’s ALWAYS a good thing to double check when you are going through the due diligence process to make sure if there are or not (just as you want to know what the HOA fees are and what they cover).

Regarding tax deductibility, the answer seems to be yes or no – it depends.

Here is a link to a good summary (Spanish and English) of the issue and an explanation of when they may be deducted and when not.

But as always, check with a tax advisor to get the lowdown. You don’t want to get yourself in trouble with the state department of revenue or the IRS.


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