Home Buying in New York>Question Details

tony923, Home Buyer in New York, NY

mortgage interest on the building is included in the Maintenance charge on co-op shares (it is tax deductible for the share-owner)

Asked by tony923, New York, NY Wed Jan 30, 2013

If that is the case, what if the flat is bought with no mortgage?

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When it comes to any tax issues, it's really in your best interest to consult with your tax professional, and or, attorney.
1 vote Thank Flag Link Thu Jan 31, 2013
Maintenance in a co-op consists of three things: Your share of the underlying mortgage which is the original mortgage the sponsor took out when they converted the building, your share of the real estate taxes and your share of the upkeep of the building. Your own mortgage is separate and different than the underlying mortgage portion of the maintenance. So, whether you take your own mortgage for the purchase of your unit or not, the maintenance for that unit will always still include your share of the underlying mortgage and that remains tax-deductible.

You are asking good questions. I would highly suggest you do what all serious buyers do, which is work with a skilled, experience agent as your buyer's agent who will take you through all the steps and explain all these things. We streamline your search, negotiate on your behalf and trouble-shoot along the way.

Jenet Levy
Halstead Property, LLC
212 381-4268
1 vote Thank Flag Link Thu Jan 31, 2013
Hi Tony,

Regardless if the individual shareholder has a coop loan, the building has an underlying mortgage. The portion of the mortgage interest paid allocated to an individual shareholder's apartment is tax deductible. The coop or the managing agent usually sends the shareholder the amount they can deduct each year.

The portion of real estate tax in the monthly maintenance is also deductible. Again the coop or managing agent will send the portion of RET paid allocated to an individual shareholder's unit.

In a condo common charges are not deductible. Condos do not have underlying mortgages.


Mitchell Hall
Lic. Assoc. RE Broker
The Corcoran Group
1 vote Thank Flag Link Wed Jan 30, 2013
Mitchell Hall, Real Estate Pro in New York, NY
Maintenance is tax deductible for the share owner. However, it goes off of what your current tax bracket is. And yes, if you pay cash on an apartment the maintenance can still be deducted. When you see a coop that is listed for sale and they say that the maintenance is 40% tax deductible, that 40% is all the maintenance combined in the building not the maintenance to the unit itself.
1 vote Thank Flag Link Wed Jan 30, 2013
Hi, You still pay monthly maintenance and the buildings property taxes, mortgage etc are all included in that.

0 votes Thank Flag Link Thu Jan 31, 2013
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