NCperson,
You are oversimplifying the special assessment. The balcony is a part of the apartment structure and belongs to each apartment. IRS requires any changes in apartment structure taxed as improvement, especially if all balconies in HOA are updated with new aluminum rails from old wooden rails. If HOA simply increased HOA fee and spend extra money on upgrade, I can file it just as HOA fee. That is create a difference between lump sum and monthly payments. If HOA increase HOA fee just adding $153 to it without breaking down this expense into renovation category, I can probably follow your advise. But I doubt, if it happen. On my question to HOA how they categorize the assessment, they replied - ask your tax advisor.
Thanks for your input.
