For income tax purposes:
- Special assessments that are charged for maintenance are not deductible, they are just living expenses.
- Special assessments that include improvements are not deductible, but the improvement adds to your cost basis and may reduce your capital gains tax when you sell.
- The portion of your regular assessment that is for property taxes is an allowable schedule A itemized tax deduction. Remember to only deduct your net property taxes after the STAR and Enhanced STAR rebates.
You may need an itemized bill in case of audit.
You need to start by checking your condo association bylaws to see what rules they must follow regarding special assessments, exemptions, and so on. If they aren't following the rules (allowing an exemption to your neighbor that is not allowed, or denying you an exemption that should be allowed) you start by talking to your board. If you feel the board's bylaws discriminate in an unlawful way, you may want to contact an attorney or the city housing department.
