Do I put a special assessment on our rental property in expenses for rental property?

[MinhT]

It depends on the nature of the special assessment.

If the assessment is for an expense or repairs and maintenance, you can deduct the special assessment on your rental property as a rental expense.

If you assessment is for an improvement (such as a new roof on a condominium), then you have to capitalize and depreciate it.

Edited 04.11.18  |  12:52 PM

[TaxGuyBill]

It likely may be a depreciable improvement.

[mang108]

Is there a difference if it's a rental vs owner occupied? 

[Critter-3]

It is not deductible at all on a personal residence.  

[Opus 17]

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@mang108 wrote:

Is there a difference if it's a rental vs owner occupied? 

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Repairs and maintenance are never deductible on your personal property.  That's just stuff you are expected to do to keep your property in good condition.

Improvements are not deducted, but the cost of improvements can be added to your cost basis and may reduce your capital gains when you sell.