Is My Co-op Maintenance Tax Deductible? by Victoria Alexander
Jan 17, 2020 brooklyn,bryan distefano,coop,coop interest,coop shares,coop tax deductions,everbank,monthly maintenance,new york city,property taxes,real estate taxes,tax deductions,tax write offs,victoria alexander
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 towards real estate taxes and interest generally goes towards 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.
I’ve included a simple way to calculate the percentage you can deduct from your monthly maintenance courtesy of our friend Bryan Distefano of EverBank. As always, feel free to reach out to me with any questions at firstname.lastname@example.org!
Interest + Real Estate Taxes = A
A x Number of Shares = B
B / 12 = C
C / Monthly Maintenance = PERCENTAGE of Maintenance that is TAX DEDUCTIBLE