Can I say "roof was replaced" even though I have a condo and not a single family home?

Forum|Forum|1 year ago
March 28, 2025
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My condo's roof was replaced in 2023. This though was a shared expense by the HOA. Can I divide this cost by the number of apartments in the condo and report this? For example: if the total cost was 20,000$ can I say I paid 2500$ if there were 8 apartments? Thanks Arvind

SabrinaD2

If your HOA levied a special assessment for a roof replacement, the tax treatment depends on your property use. Here's how it works:

Tax Treatment:

If your condo is a personal residence, the special assessment for a roof replacement is not tax deductible.
If your condo is a rental property, the assessment can be capitalized and depreciated over time.

Shared Expense:

Since the roof replacement was a shared expense by the HOA, you can divide the total cost by the number of apartments to determine your share. For example, if the total cost was $20,000 and there are 8 apartments, your share would be $2,500.

Reporting:

For a rental property, you would report your share of the assessment ($2,500) and depreciate it over the useful life of the improvement, typically 27.5 years.

Original post

arvind-doraiswamyAuthor

Thanks SabrinaD2. It was indeed a rental but it was not a special assessment - we saved up over years, built up the amount and then paid for the roof with that. Does it still count?

Arvind

KrisD15

No, if this was included in your monthly HOA fee and you reported the monthly fees as a rental expense, you would not again claim the expense for the roof.

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