Special Assessment District(SAD) Information
- When a township or city charges you for local benefits near your home or other property, those charges are not deductible on your Federal Income Tax Return as a property (or real estate) tax.
- Local benefits include charges, or a special assessment, to build sewers or sewer lines, streets, sidewalks, water mains and similar improvements. If you pay for a special assessment over a period of years, and interest is charged, you may be able to deduct the interest as a real estate tax in the year you pay it. (See your tax adviser.)
- While not deductible, a special assessment will increase the basis in your property. (An increase to your basis will reduce the amount of the gain upon the sale of the property.)

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