Don’t Forget Condo Common Area Improvements at Tax Time

Posted by Jim Kimmons, Broker/Owner • June 24, 2008 • Printer-friendly

The National Association of Realtors just ran a story on a frequently-overlooked tax break for condominium owners. Regular maintenance is not deductible at the time of sale, but you can write off your proportional share of major improvements to common areas, as it becomes part of your cost basis.

As many of the Taos real estate market condo owners are not using it as their primary residence, this is something to consider when you're about to sell. One client of mine had a major septic upgrade for the entire project in the last year or so. Consult an accountant, but they should be able to write off their proportional share of this expense in their cost basis when they sell.