My condo has a serious construction problem and we can no longer go after the builder (10 year time limit per state law, they built it 25 years ago). So all condo owners in the building have to pay a special assessment. Is there anyway of deducting this? I am not getting a 2nd mortgage, homeowner's loan, or anything like that, I am taking a loan from my Federal 401K plan. The loan itself/the interest is not deductible, I'm wondering if the emergency repair bill itself is.
2006-08-06 07:10:07 · 4 answers · asked by Rossonero NorCal SFECU 7 in Business & Finance ➔ Taxes ➔ United States
You may be able to adjust your cost basis in the condo. This would reduce your capital gain when you sell the condo. A CPA can help you determine how much. Given the amount of capital gain currently excludable for a primary residence, it may not make any difference
2006-08-06 13:31:21 · answer #1 · answered by STEVEN F 7 · 1⤊ 1⤋
I don't think so - you should get a 2nd mortgage for it so you can deduct the interest at least.
A home owner's assessment is not a tax, because they have no authority to tax.
2006-08-06 14:15:22 · answer #2 · answered by ceprn 6 · 0⤊ 0⤋
It is just like any other repair. You can only deduct it from your taxable basis when you sell the condo.
2006-08-06 14:15:42 · answer #3 · answered by rscanner 6 · 0⤊ 0⤋
No you can not the best person to answer this would be your real estate lawyer
2006-08-06 14:15:18 · answer #4 · answered by highlander 2 · 0⤊ 0⤋