Are municipal sewer payments deductible?

Photo: pixabay.com

Q. Are payments to a municipal sewer authority deductible on New Jersey or federal tax returns?
— Taxpayer

A. It depends.

If you have a business or a rental property, then the payments are deductible, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

If not, then it’s not deductible, he said.

“Note that it is a fee and not a tax, therefore eliminating it as personal deduction,” Karu said. “If you have a rental property or a business that has to pay that fee, then it would be deductible in the normal course of business.”

Email your questions to moc.p1558568736leHye1558568736noMJN1558568736@ksA1558568736.

Tags: