Any such charges must be added to the tax basis of your property - they'll eventually reduce the amount of taxable profit on your property when you sell. However, there is a distinction to be made between improvements and repairs. Assessments for repairs, such as repair of a broken sidewalk, or for maintenance, such as mowing, are deductible if the charges are broken out separately on your tax bill. The general rule is that the person who owns the real estate and, therefore, owes the taxes is the person who can deduct them, provided that he or she actually paid the amounts. Co-owners should divide the tax bill and the deduction according to the percentage of their ownership interest.
More detailed rules apply to condos and co-ops .
You'll also want to be aware of the rules regarding when taxes are deductible . All Rights Reserved.