I had to pay $35,000 to install public sewer infrastructure. After completion of the project I have to "give" the sewer to the city. We had to do this to comply with DEQ regulations in our county. Our failed septic was not allowed to be repaired. We had to install public sewer infrastructure because it did not exist. Can I deduct the cost from my taxable income?

YOU need to depreciate it for the next 20 years i guess; perhaps you may check it iwht thr county govt for sure on the depreciable year ofr the infrastructure