Co-op Maintenance Tax Deduction Calculator
Part of your co-op maintenance is tax-deductible — specifically, your proportionate share of the building’s real estate taxes and interest on its underlying mortgage, which the co-op corporation pays on behalf of all shareholders. The rest (utilities, staff, repairs, reserves) isn’t deductible. Your building’s accountant sends this out annually, usually as a letter with dollar-per-share figures or via Form 1098. Plug those numbers in below.
Not sure what percentage to use elsewhere on the site? This feeds directly into the “Co-op Maintenance Tax-Deductible %” field on our Rent vs. Buy Calculator. See all our calculators.
Glossary
Your co-op corporation pays real estate taxes and interest on the building’s underlying mortgage using money collected through maintenance, and those two costs are what the IRS allows shareholders to deduct, proportionate to their shares. The rest of your maintenance — utilities, staff, building repairs, reserve fund contributions — isn’t a deductible cost for tax purposes, the same way it wouldn’t be for a homeowner.
Your building’s managing agent or accountant sends an annual letter (sometimes alongside a Form 1098) breaking out the mortgage interest and real estate taxes paid by the corporation on a per-share basis. Multiply each figure by your number of shares to get your personal deductible amount — that’s exactly what this calculator does.
Most NYC co-ops land somewhere between 30% and 50% of maintenance being deductible, though it varies widely by building depending on how much underlying mortgage debt the corporation carries and its property tax liability. A building with little or no underlying mortgage will skew toward the low end.
Your deductible real estate tax portion counts toward the federal SALT (state and local tax) cap along with your other property and income taxes — currently $40,000 through 2029 under current law. The mortgage interest portion is separate and isn’t subject to SALT. You also need to itemize deductions to claim any of this; it’s not available if you take the standard deduction.
Your deduction percentage isn’t fixed — it moves with the building’s property tax assessment and how much underlying mortgage interest it pays each year, which typically declines over time as the loan amortizes. Use this year’s letter, not last year’s, for an accurate number.