Is My Co-op Maintenance Tax Deductible?

Can I deduct my co-op maintenance tax?

The short answer is YES—a percentage of your monthly maintenance is tax deductible and this percentage is different from unit to unit depending on number of shares owned.
With a co-op, the amount of the maintenance that is tax deductible is based on the portion that is used to pay real estate taxes and interest on the co-op building’s underlying mortgage. The portion of maintenance that does not go toward real estate taxes and interest generally goes toward heat, hot water and care of the building (roof maintenance, painting of public spaces, elevator repairs, etc.). Keep in mind that the write-off will vary from year to year as real estate tax amounts and interest paid on the underlying mortgage change from year to year.

A formula to calculate the deduction percentage of your co-op maintenance”

I’ve included a simple way to calculate the percentage you can deduct from your monthly maintenance.
As always, feel free to reach out to me with any questions at victoria@realtycollective.com!
Calculate It!
Interest + Real Estate Taxes = A
A x Number of Shares = B
B / 12 = C
C / Monthly Maintenance =  PERCENTAGE of Maintenance that is TAX DEDUCTIBLE
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