Condo Special Assessments Offsetting Captial Gains Taxes?

2 Replies

I own and reside in a one-bedroom unit in a multi-family condo building. We homeowners are paying a monthly special assessment (through 2024) for a construction loan (facade upgrades, waterproofing, etc.).

If I were to sell my unit at some point, can the total amount I've paid toward the special assessment be deducted from, or otherwise partially offset, that capital gains taxes I would pay on any profit I make on the sale? 

There are no capital gains taxes on owner occupied properties if you've lived there for 2 of the past 5 years and the gain is under $250k. (I'm 99% sure that's the specifics but don't hold me to it. I'm not a CPA).

However, if this were a rental property, your HOA fees would all be expenses, to be taken in the current tax year, not saved up and taken when you sell.

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