Common Questions about Condo Fees and Taxes
Here are the two most commonly asked questions regarding condo fees and taxes.
- Are condo fees tax deductible? No, although your mortgage interest and property taxes are deductible from your income taxes, the IRS does not allow you to deduct your condo fees. They view the fees as an assessment from a private company. However, if your condo is an investment property and is currently leased, you can deduct the condo fees.
- Are condo assessments tax deductible? No, major repairs or special assessments in addition to your monthly fees are not deductible. There is a small loophole though, these improvements can be depreciated over time via a depreciation schedule. As in the first question assessments can be deductible if your condo is an investment property and is currently leased.
All information provided is deemed reliable, but is not guaranteed and should be independently verified by your CPA.
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