WHAT ARE MELLO ROOS and CAN I DEDUCT THEM ON MY TAXES?

During your search for a new home you will like come across the term MELLO ROOS, noted in the MLS listing, and wonder what this is. Essentially they are fees (in some subdivision) to pay for improvements such as sidewalks, sewers, services, and related items; they do have a lifetime and will expire, but it could be 20 years or more. They are different than HOA fees.

I wanted to keep this post short, but you can read more about Mello Roos here.

A buyer asked me recently if Mello Roos are tax deductible. Tough question - IT DEPENDS. Here is some information that will help with this question.

But the best advice is to check with your Accountant - you don't want a problem with the IRS. And this will likely also be considered by your lender, along with insurance and property taxes when determing what you quality for.