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January 28, 2020
Question

Can I deduct a city lien?

  • January 28, 2020
  • 1 reply
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Can I deduct the lien on my rental property on my taxes? Prior to purchasing the rental property it had a lien from the city due to unpaid municipal water bills. Can I deduct what I have paid on my taxes or have them show as a loss?

1 reply

ColeenD3
January 28, 2020

If you paid for it before you bought the property, then no. If you paid for it as a part of an expense at closing, then add it to the basis of the property.