---
title: "Condo unit seller's cost basis and fees as \"capital improvements\" for tax purposes"
description: Can contributed capital improvement contributions in the form of condo fees into condo association go towards seller's tax cost basis?
---

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# Condo unit seller's cost basis and fees as "capital improvements" for tax purposes

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## What do you think? Question:

 I jut sold a condo in our HOA. Someone told me that 20% of the monthly condo fees over the 9 yrs of ownership could be considered "capital improvements" and thus increase my cost basis in the condo for tax purposes.

The rationale behind her (past president of the condo board) advice was that 20% of the monthly condo fees was placed in a [reserve fund](https://www.condoassociation.com/blog/tabid/19257/Default.aspx?Tag=Condo+Reserve) for capital expenditures. My argument was that some of the expenditures possibly were for "maintenance" or repair of common elements that need such repair over time. She seems to be very certain that I could use the figure as a capital improvement/assessment.

I should add that over the past 6 years the [condo association](https://www.condoassociation.com/CondoAssociation/tabid/83434/Default.aspx) reserve fund had been depleted and thus the unit owners were assessed 5/6 times for a total of $50,000 for roof replacement, replacement of the finishing of the building, garage roof, etc. Could you enlighten me, please. Thank you

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## What do you think? Answers (4)

#### What are your thoughts on this topic?

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## Related Posts

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### [Can association require capital contributions for buyers at closing?](https://www.condoassociation.com/blog/can-association-require-capital-contributions-for-buyers-at-closing)

### [Can condo association force capital contribution by new owner?](https://www.condoassociation.com/blog/can-condo-association-force-capital-contribution-by-new-owner)

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