It is a rental that I purchased several years ago
Then my response applies one hundred percent. There is no doubt this is a property improvement that adds value to the property. You can't call it a tax, since it's levied by the HOA or Condo Association, which is not a taxing authority.
When it comes treating it as a tax, it falls into one of those really "grey" areas that the IRS really doesn't provide clarity on. The word I use to describe this grey area is "ambiguous". One person can define it one way, and you can define it another. The problem is, both of you are right, and both of you are wrong. It's just to "ambiguous". So stay away from the "tax" aspect of this and go with property improvement. Besides, it's better for you in the long run when you sell the property since it increases your cost-basis by a cool $55K.
