I had to pay $16,830. for a special assessment on my condo. Can I deduct this?

Forum|Forum|6 years ago
June 1, 2019
2 replies
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The assessment was to replace all siding, stone, railings, etc. on all buildings due to the prior owner/builder construction errors. The cost for all buildings was over $3,000,000. and we each had to pay according to our square footage. Mine was 16,830.

TurboTax Deluxe Online

Opus 17

Employee

No. Those costs increase your cost basis (the amount you have invested in the property) and that may reduce your capital gains when you sell. But it's not a deductible expense.

If you are renting the condo and reporting rental income, you depreciate the assessment over 27.5 years.

jackiegangi

We had to pay special assessment for repairs on our condo building that totalled $7,000,000. Our share for our unit was $22,000. How is this treated for taxes?

AnnetteB6

The previous advice given by Opus17 still holds true for a 2022 tax return.

If your condo is your primary residence and not a rental property, then the amount you had to pay for the special assessment is not deductible on your tax return. Keep the information for your records and add it to the basis of your property when or if you sell it in the future.

If you are renting the condo or renting a portion of the condo, then you would depreciate the assessment as an improvement to the property over 27.5 years, adjusted by the percent of business usage.

@jackiegangi

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