Is Co-op Monthly Maintenance Tax Deductible in NYC: https://www.hauseit.com/sample-co-op-tax-deduction-letter-nyc/ <br /> <br />Interactive Co-op Tax Deduction Calculator: https://www.hauseit.com/co-op-maintenance-tax-deduction-calculator/ <br /> <br />Co-op owners in New York City typically receive an annual co-op tax deduction letter in the mail each year which specifies how much of a tax deduction each owner can take on their personal income tax returns. This letter is also referred to as a Form 1098. <br /> <br />The tax deduction amount is based on the amount of mortgage interest and real estate taxes paid by the co-op corporation each year. The Form 1098 specifies two dollar deduction amounts: one for mortgage interest and another for real estate tax. A co-op owner calculates her or his dollar deduction amount by adding these two figures and multiplying the result by the number co-op of shares owned. <br /> <br />Buyers, sellers and listing agents in NYC commonly refer to a co-op’s percentage of tax deduction for monthly maintenance (as opposed to the dollar deduction amount) in order to more easily compare this figure across different listings. <br /> <br />The percentage of tax deductibility of maintenance is calculated by dividing a co-op apartment’s annual tax deduction dollar amount by the annual sum of a co-op’s monthly maintenance payments. <br /> <br />The average co-op tax deduction percentage in NYC is 40% to 50% of monthly maintenance. <br /> <br />What Determines % of Co-op Maintenance That's Tax Deductible? <br /> <br />The percentage of co-op maintenance that’s tax deductible depends on how much in real estate taxes and mortgage interest is paid by a co-op building each year. Therefore, a co-op with a higher annual real estate tax and/or mortgage interest bill will have a higher tax deduction percentage. <br /> <br />If two co-op buildings pay roughly the same amount of real estate taxes but one has a much larger mortgage with a higher interest rate, the annual tax deduction percentage will likely be higher for the co-op with the bigger mortgage. <br /> <br />What Other Information Do I Need to Gather before Selling My Co-op? <br /> <br />When you’re listing your co-op apartment for sale, you’ll need to know key facts about your apartment such as the number of shares you own and what percent of your monthly maintenance is tax deductible. <br /> <br />Once you’re well underway with your sale, you’ll need more detailed information such as the building’s financial statements, a copy of the offering plan as well as the proprietary lease. The buyer’s attorney will need these materials to complete due diligence before your buyer signs the purchase contract. <br /> <br />Looking to buy or sell a home in New York City? Learn how you can save on commission and closing costs at https://www.hauseit.com <br /> <br />Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/ <br /> <br />#hauseit #hauseitnyc <br />https://www.hauseit.com
