Thanks a lot! They call it a mortgage, so it has to be secured by the building itself. And the coop cannot really spend the loan money on anything else but on the apartment complex itself. The coop financial statements don't provide much details, but from what I know, big part of it was a refi of prior mortgages, one of which were used for a past capital improvement and another is a refi itself of a decades old mortgage; part of the new mortgage has been used for most recent cap. improvements, and finally the last part is sitting in reserve for future capital improvements.
The only relevant part in pub. 17 that I found was this. "If you are ... a tenant-stockholder in a coopeerative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation." Not sure if it gives me more clarity but it let to another question - what other items from coop financial statements I can take advantage of. I know I should take my portion of the mortgage, addition to paid-in capital, and capital improvements and add them to my basis. But is there anything else that could be either amortized, capitalized or expensed directly? For example, can I deduct my portion of coop's depreciation and amortization?
