Can I say "roof was replaced" even though I have a condo and not a single family home?

[arvind-doraiswam]

My condo's roof was replaced in 2023. This though was a shared expense by the HOA. Can I divide this cost by the number of apartments in the condo and report this? For example: if the total cost was 20,000$ can I say I paid 2500$ if there were 8 apartments? Thanks Arvind

[SabrinaD2]

If your HOA levied a special assessment for a roof replacement, the tax treatment depends on your property use. Here's how it works:

Tax Treatment:

• If your condo is a personal residence, the special assessment for a roof replacement is not tax deductible.
• If your condo is a rental property, the assessment can be capitalized and depreciated over time.

Shared Expense:

• Since the roof replacement was a shared expense by the HOA, you can divide the total cost by the number of apartments to determine your share. For example, if the total cost was $20,000 and there are 8 apartments, your share would be $2,500.

Reporting:

• For a rental property, you would report your share of the assessment ($2,500) and depreciate it over the useful life of the improvement, typically 27.5 years.

Original post

[arvind-doraiswam]

Thanks SabrinaD2. It was indeed a rental but it was not a special assessment - we saved up over years, built up the amount and then paid for the roof with that. Does it still count?

Arvind

[KrisD15]

No, if this was included in your monthly HOA fee and you reported the monthly fees as a rental expense, you would not again claim the expense for the roof.