Home Buying in 11373>Question Details

Susan, Home Buyer in Elmhurst A, NY

taxes $0

Asked by Susan, Elmhurst A, NY Sun May 2, 2010

what is taxes $0 in the information about coop, is that mean the the buyer dont have to pay property tax? also insurance is included is that mean that the unit has insurance came with in and it's include in maintenance fee?

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Diallo J. Stevens, CRS’s answer
Anna's answer is excellent. I'll just add a couple of minor points. Because the maintenance on a coop includes your pro rata share of the real estate taxes and insurance for the property, a portion of it will be tax deductible. 'How much' is one thing you will want to know.

For those readers that may not be familiar with coops and how they differ from condos (far enough off topic that I won't get deep into it on this answer): you may notice as a rule of thumb that the "maintenance charges" on coop are higher than the "common charges" on a condo (again, generally speaking). This is because with a condo, you pay your property taxes and basic pro rata insurance separately (just like you do with a house); whereas, they are bundled into the maintenance on a coop.

Sometimes people get confused about this, in part because many websites do not differentiate coops well. In fact, coops are rather rare across the country, although they are quite common in NYC. Many websites don't have fields for "common charges" versus "maintenance charges." Plenty require something be entered for taxes, even though that may not make a lot of sense - while completely omitting maintenance charges.

Hope this provides value. The web reference included is a 2 bedroom coop unit listed for sale in School District #26.
0 votes Thank Flag Link Fri Feb 4, 2011
When looking at a co-op listing, taxes are stated as zero as they are included in your monthly maintenance charges, as is the building's insurance--however, you will need your own private co-op insurance to cover your personal property. Also included in the maintenance are any existing underlying mortgage, some may include heat and utilities, some may only include heating, upkeep of the building, etc.--charges do vary by complex to complex--for a detailed look as to what is included ask your agent and or attorney or ask to see the financials for the complex.
0 votes Thank Flag Link Sun May 2, 2010
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