If the association borrows money from a bank or for capital improvements, owners cannot claim a tax deduction for the assessments they pay to the association to repay the loan. The loan was made to the association (not individual owners) and is being repaid by the association.
However, if owners were to pay a special assessment by borrowing against the equity in their units, they could probably claim a
deduction for the interest.
ASSISTANCE: Associations needing legal assistance can
contact us.
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