The link I provided in my answer to Publication 530 is the description of the tax treatment as far as the IRS is concerned. On researching this, it is clear that the whole arrangement is full of legal wrangling; it dates back to the 1860's! But if it doesn't fit the definition above as "redeemable rents", thus allowing them to be claimed as mortgage interest (which is bizarre I admit), you might want to talk to other residents about whether they have been successful in claiming these on their taxes legally. No doubt a local CPA knows for certain how the letter of your law there stacks up to the IRS' definition. Still, I hope you found this information helpful.
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