Home Buying in Temecula>Question Details

Josh, Home Buyer in Temecula, CA

Are Mello-Roos Tax Deductible?

Asked by Josh, Temecula, CA Tue Feb 23, 2010

Help the community by answering this question:


Hi Josh,

Jane's answer is exactly right. I've included the link on Mello-Roos Taxes from the Franchise Tax Board below.
1 vote Thank Flag Link Tue Feb 23, 2010
Josh: Some of the Mello-Roos taxes are deductible and some are not. You cannot deduct Mello-Roos taxes if they are assessed to fund local benefits and improvements that tend to increase the value of your property. Mello-Roos taxes may appear on your annual county property tax bill with other deductible property taxes. That does not mean you can deduct the Mello-Roos taxes. You may only be able to deduct a portion of the total property tax shown on your bill.

Most of the time, you cannot deduct real estate taxes assessed for local benefits and improvements. However, you can deduct them if they are for maintenance, repair, or interest charges related to those benefits. Some examples of local benefits are:

Sewer lines
Water mains
Public parking facilities
Other similar improvements
To deduct local benefit taxes, you must be able to show the amount of the taxes that are for maintenance, repair, or interest. If you cannot show what part of the local benefit taxes are for these charges, you cannot deduct the taxes.

For more information, you can:

Contact your Mello-Roos District.
Get Internal Revenue Service Publication 17, Your Federal Income Taxes-Individuals, Chapter 24.


Web Reference: http://www.soreal.biz
1 vote Thank Flag Link Tue Feb 23, 2010
Check out this link
0 votes Thank Flag Link Tue Feb 23, 2010
Josh, mello-roos are included in your property tax bill, but are generally used to cover special assessments.
You always want to check with a tax professional, but my CPA has told me as far as he is concerned they are a deduction the same as property taxes.
Hope this helps
Web Reference: http://firsttimehome.us
0 votes Thank Flag Link Tue Feb 23, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer