Shareholders in a co-op corporation are considered by the Internal Revenue Service to be homeowners. As a shareholder, you are entitled to deduct your share of the real estate taxes and mortgage interest paid by the cooperative.
At the beginning of every year, you will receive a letter from the co-op’s accountants that indicates how many dollars per share for (1) real estate tax and (2) mortgage interest you will be allowed to claim as itemized deductions on Schedule A of IRS Form 1040. You will also receive a Mortgage Interest Statement (IRS Form 1098) from our management company that indicates the exact dollar amount that you can deduct for mortgage interest (but not for real estate tax).
If you owned the shares for only part of the year, the 1098 form will reflect this. You are allowed to deduct mortgage interest and real estate tax only for that portion of the year you owned the shares. @aomongelluzzo
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