How far back can I claim a deduction for repairs?

Question

For the last 2 or 3 (maybe 4) years, I've had a special assessment tacked onto my monthly HOA for a building repair (boiler replacement I think).  I've never claimed tax deductions for this repair.  Obviously, I can deduct what I paid into this in 2023.  But, can I now also deduct what I paid in 2022 and 2021 or have I missed out on that opportunity?  This is a rental condo in Chicago.

Kelly O'Keefe · Answer

you can amend Three years back. Before amending I would ask how much of a return/credit you will receive vs. how much it will cost to amend.

Bruce Woodruff · Answer

You can file an amended return for that. If it's only a couple years back, you should be fine. I think it's a 3 year window....

Steven De Lange · Answer

Adding to @Bruce Woodruff: I found this on the Illinois Government website:

"If your change decreases the tax due to Illinois and you want a refund, you must file an amended return (claim for overpayment) within three years after the extended due date, three years after the date your original return was filed, or one year after the date your Illinois tax was paid, whichever is latest."

Hope this helps @Douglas T.!

George Skidis · Answer

I prepare 170+ tax returns a year for my clients. The correct answer is maybe. Maybe you should, maybe you shouldn't.

So yes. You can file amended Federal and State returns to claim the missing deduction. The question you need to ask yourself is "IF" the cost of filing an amended return is worth it. Call your tax preparer and ask them what they charge to amend a return. If they charge $500 and your deduction is only $250 it is probably not worth it. Also, if you were already showing a loss on the property and were refunded every penny you paid in from all sources, it might not be worth it. Exception: if the deduction is large enough to create a Net Operating Loss and be carried forward to a future year when you have a larger profit. The amount of the HOA charge and your deduction make all the difference. So the correct answer remains maybe.

You can only go back and amend returns for 3 years from the most recently filed return. Once you file your 2023 tax return you can no longer amend 2019. However, you can amend 2019 before filing 2023.

So now that the waters have been sufficiently muddied, the choice is yours.

How far back can I claim a deduction for repairs?

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