Calculating Maint. Deductibility
Just to make sure I am doing the math right, from my 1098, my RE taxes paid in 2008 were X and my share of the Building Mortgage paid was Y. If maintenance is Z, then is this the right formula for determining what I can state on my listing is the deductibility? ( X…
Just to make sure I am doing the math right, from my 1098, my RE taxes paid in 2008 were X and my share of the Building Mortgage paid was Y. If maintenance is Z, then is this the right formula for determining what I can state on my listing is the deductibility?
( X + Y ) / ( Z * 12)
I am getting a number of ~ 24% I vaguely recall the listing when I bought had 33% so I don’t know if that was bogus or if I am doing my math incorrectly?
Thanks,
Matt
Your formula is correct assuming that you paid the maintenance for all 12 months of 2008. Percentage deductability changes from year to year. Two reasons the deductability might have gone down are less mortgage interest (building refinanced at a much better rate since your original co-op unit purchase but didn’t change the maintenance) or the building raised maintenance over the years to cover increased building expenses that outpaced any increase in mortgage interest or property tax cost (i.e., you added a doorman, or utilities rose significantly relative to the deductable costs).