We rent the condo 100% and file Schedule E. HOA charged large special loss assessments after Hurricane Sally, due to insurance not covering all damages. In litigation with insurance, had to pay for repairs with large assessments.
1. No improvements above and beyond damage, so not Capital Improvement, right?
2. I cannot claim as "qualified disaster loss" because it's not personal use property, right?
3. Because rental and not personal use property, can I file this under Form 4684 Casualty Loss at all?
4. Is it considered a Repair since it restored the building?
I just really don't know how to treat the assessment, please advise.
