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How to Figure Out Your Co-op Maintenance Tax Deduction—a Simple Formula

With the 2020 tax deadline extended to July 15, you have some extra time to look for deductions this year. And if you live in a co-op, that’s good news because you can actually deduct your co-op maintenance fees. You just need to know how. 

Let’s start with how much you can deduct, which is based on the portion 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 usually goes toward utilities (heat, hot water) and care of the building (roof maintenance, improvements to common spaces, elevator repair).

It’s important to remember that the amount of the write off will vary from year to year as real estate tax amounts and interest paid on the underlying mortgage changes. 

Here is a handy formula you can use: 

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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