are condo assessments tax deductible
Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis. Generally, you claim expenses related to rental property on Schedule E and attach it to your individual income tax return. However, if you own the condo via a corporation, then you would fill out an IRS Form 1162 or 1162 S, which are tax returns for C corporations and S corporations, respectively. Tax Considerations for Condo Renters. Personal expenses are generally not deductible. So if you are renting the condominium from someone else, you cannot itemize the condo fee that you pay and claim a tax deduction, nor can you claim a deduction for depreciation. Other Deductible Expenses. Owners of rental condominiums can also deduct property taxes and fees paid to the association for maintenance and repairs of common areas, as well as attorney fees paid for the purpose of generating income. Generally, fees and expenses incurred as part of owning rental property are tax deductible. If you don't live in the property but routinely rent out the condo, the Internal Revenue Service normally treats condo fees, association fees and other mandatory expenses as ordinary business expenses. Rating Newest Oldest. Best Answer: Nope, sorry condo assessment fees and special assessments are not tax deducible. Keep track of the special assessments, though, because you could add that to your cost basis when you get ready to sell the condo. If you rented out a condo that you owned, then you could deduct all the assessment fees. You own a duplex and live in one half, renting the other half. Both units are approximately the same size. Last year, you paid a total of $10,000 mortgage interest and $2,000 real estate taxes for the entire property. You can deduct $5,000 mortgage interest and $1,000 real estate taxes on Schedule E (Form 1040). If you itemize your deductions, you can deduct the other $5,000 mortgage interest and $1,000 real estate taxes on Schedule A (Form 1040). If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. As a rule, special assessments imposed on members are not tax deductible. If, however, an owner's unit is a rental property, then special assessments could qualify as a tax-deductible expense (if the owner's tax adviser agrees). The following question addresses tax deductible interest payments. INTEREST DEDUCTIONS. Report Abuse. Only if the special assessment was for something that was tax-deductible-- like county taxes -- but it's very unlikely you would not be billed directly for those as the property owner. SDD · 9 years ago. Thumbs up. 0.
No