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Can I claim a condo association assessment for tax purposes?

Posted on Sat, Jul 16, 2011 @ 09:58 AM
  
  
  
  
  

I live in a 32 unit bldg; it is 30 years old. Due to termites, all the common area surfaces were replaced, including decks, railings, etc; the siding was replaced with Hardee board type material. After the work was finished, we were "special assessed" about $30K. I would like to know if I can claim it on my taxes - either state and/or federal. And if so, how do I do it? I live in California.

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COMMENTS

Good question. Interested in hearing from the professionals. 
 

posted @ Saturday, July 16, 2011 10:34 AM by MA condo owner

Lets assume instead of living in a condo you dwelt in youjr own private home. Now lets assume that home was damaged by a termite infestation. Would you think the cost of ridding your property of the termites and repairing the damage they caused would be a deductable item on your state or federal taxes. I don't think so.

posted @ Saturday, July 16, 2011 10:43 AM by Scott

Plain and simple -- NO!  
 
 
 
With regard to the special assessment. Didn't all the members vote on it? Even if you didn't vote for it, if the required % did, then you, too, are required to pay it. IMO, requiring a special assessment means the BOD is errant is maintaining a reserve fund. This is something that should be looked at and corrected.

posted @ Saturday, July 16, 2011 11:17 AM by mary

Any assessment made be deducted on both Federal and California taxes as long as it's investment property that you rent out. If it's owner occupied or a vacation home, you may not.

posted @ Saturday, July 16, 2011 11:30 AM by Richard

If this your primary residence you will not be able to deduct this on your taxes this year. You can only do it for investment/rental properties. 
 
However, if this work would be considered an improvement you can write off this amount when time comes to sell your place. This amount would be counted in calculating basis price of your unit. But this only works if this is an improvement, not repair. Talk to your accountant about this to get more details.

posted @ Saturday, July 16, 2011 11:51 AM by Zhenya Rozinskiy

In the case of a special assessment for capital improvements you could add this to the basis of your condo to benefit later for a sale. This prompts the question of reserves..I wonder if that would work. i am sure there are some CPAs out there to set me straight???

posted @ Saturday, July 16, 2011 1:25 PM by Condo Bob

Ridding the condo of termites and repairing the damage is not in any way a capital i8mprovement. It is maiontgenance and as such unless this condo you own is used for producing income (rent) you cannot deduct any of this assessment.

posted @ Saturday, July 16, 2011 2:39 PM by Scott

To MA  
 
 
 
I coud not have said it better myself. 
 
 
 
Some people that live in condos hink that the association is responible for every thing. 
 
I wished they would read before they buy into an asociation. 
 
 
 
No is the answer that you cannot claim it for tax reaons. Get real!!!!!!

posted @ Saturday, July 23, 2011 2:04 PM by sr

 
Thank you for sharing your great article and I like it very much. Welcome to Canada Goose Parka.

posted @ Thursday, September 29, 2011 9:19 PM by Canada Goose Parka

The way to write this special assessment off in the state of calif is either have your place as a rental as stated previous or use a home loan of equity to write off

posted @ Thursday, June 06, 2013 2:16 PM by j

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