Real Estate Tax Abatement

[Jonathan1]

I reside in a Co-op apartment in NYC and it is owner occupied and my primary residence.

In 2020, I received a property tax abatement ($1400) and a STAR exemption ($300).

STAR is the New York State School Tax relief program which provides some exemption from school property taxes. 

The Co-op managing agent identifies this amount on one of the monthly maintenance invoices we receive during the year.  That is, I do not receive a check for these amounts.   The Board conveniently then applies an assessment that almost equals the amount of the abatements. 

I do receive a "Form 1098" each year (that identifies my mortgage interest on the outstanding mortgage principle) as well as a letter indicating the real estate tax amount per share.   I than multiply that amount by my number of shares in the Co-op to derive my real estate tax.

I will be itemizing for my 2020 return.

Question:

On my Federal return, is it most appropriate to enter the real estate abatement and STAR exemption amount under miscellaneous income (other reportable income)  or just subtract the dollar amount of these abatements from the total of my real estate tax for the year?

Thank you.    

[JeffreyR77 · Accepted solution]

You should reduce your real estate tax amount by the amount of these abatements and enter the adjusted value in TurboTax.

[Jonathan1]

Thank you Jeffrey for you clear and prompt reply and answer. 

[ZoeyN]

I am renting my coop apartment. The apartment is not my primary residence. I have a wash entry for assessment and abatement on the year-end maintenance billing.  Should I just deduct the real estate tax by the abatement amount that is shown on the maintenance bill?  Thanks,