How Do Condo And Co-op Fees Differ?
A “co-op fee” typically includes an underlying mortgage and property taxes. Mortgage interest and property taxes are typically deductible, thus much of a co-op fee is usually deductible.
The precise percentage you can deduct will vary according to your particular co-op. See the co-op treasurer and your tax professional for details.
A “condo fee” typically includes payments for such items as maintenance and management. These items are not generally deductible for owner-occupants. Condo owners pay mortgage and property tax costs directly, and such costs — while generally deductible — are not included in the condo fee.
A condo fee can be a deductible cost for an investment owner.
For details, please speak with the condo treasurer and your tax professional.
© Copyright 