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Level 2
posted Jun 6, 2019 3:15:47 AM

How to determine unadjusted basis & what is included in maintenance expenses on rental property

Am I understanding correctly that the unadjusted basis of my condo that I am renting out, is the rent collected for the year/lease period?  Also in determining cost of all repairs, maintenance and improvements, do Homeowners Dues count as part of this (under maintenance)?

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1 Best answer
Level 15
Jun 6, 2019 3:15:49 AM

Original basis (unadjusted basis) is simply what you paid  for the building (not the land).  

Adjustments are then made to the original basis for improvements, depreciation, etc.

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Homeowner Dues:

I list them under Management Fees as the dues I pay, while some are for repairs, maintenance, trash, water, they managing the place and collect the dues each month.   

They can be listed a number of areas, however be consistent and list them under same area, year to year, and this will help you compare years to each other so nothing is overlooked. 

1 Replies
Level 15
Jun 6, 2019 3:15:49 AM

Original basis (unadjusted basis) is simply what you paid  for the building (not the land).  

Adjustments are then made to the original basis for improvements, depreciation, etc.

------

Homeowner Dues:

I list them under Management Fees as the dues I pay, while some are for repairs, maintenance, trash, water, they managing the place and collect the dues each month.   

They can be listed a number of areas, however be consistent and list them under same area, year to year, and this will help you compare years to each other so nothing is overlooked.