Coop Shareholder Statement Deductions Vs Tax Abatement

Comments(7)

• 
  cjmazur10th February, 2008

  what does it mean for the Underlying Mortgage is currently in abatement status?

• 
  pqtwo10th February, 2008

  The Co-op development property taxes are in year seven of a 8 year tax abatement.
  
  thanks in advance

• 
  pqtwo16th February, 2008

  Thanks for the information.

• 
  NewKidInTown315th February, 2008

  In my opinion, you still own the same property. You have only subdivided your property into two separate properties. As far as your tax return in concerned, I would report two properties on my Schedule E instead of just one as you had done previously.
  
  Keep the same depreciation schedule you had before, just allocate half of your cost basis (and remaining depreciation basis) in the duplex to each condo. Continue depreciating over the remainder of the depreciation schedule.
  
  Subdividing your property and converting to condo comes at a price. You incurrred survey costs, recording fees, legal fees to draft condo association bylaws, separate metering installation and hookup costs for power, water/sewer, gas, etc.
  
  Consult your CPA for specific details on how to capitalize these costs and your tax reporting.

• 
  secoury15th February, 2008

  Thank you very much. I greatly appreciate your help.

• 
  MAT3Sigma21st February, 2008

  Hi-
  We had 1 duplex and 5 houses on two parcels and performed parceling to put each unit on its own lot- there was a bit of development involved. All depreciation stayed common. Upon selling the duplex, costs were divided on a per living unit basis, but other methods could have been used, according to our CPA. The various development costs are amortized over different periods, depending on the type-

• 
  finniganps20th February, 2008

  The amount you ascribe to the non-land assets should equal FMV. This is what you can depreciate.