Maintenance apportionment

Reference:
http://disc.yourwebapps.com/discussion.cgi?disc=94379;article=11863;title=Habitat%27s%20Board%20Talk;pagemark=40

Each year our co-op office sends 1098's documenting the amount of interest one has paid prorata (e.g.: based on shares) as well as taxes one has paid prorata as well. The amounts, interest and real estate taxes, are shown in block #5. If there are two owners in a unit each receives a separate 1098. Thus if the unit paid $1,800 in taxes and there are two owners, each receives a 1098 in the amount of $900 for taxes while the interest expense is similarly split.

These are sent before the end of January each year in compliance with IRS rules.

Further, our co-op bills (itemizes) the assessment separately in the monthly bill. For tax purposes, the yearly assessment (yes, the assessment is every year as our co-op is 43+ years old and capital improvements are de rigueur) is billed over a lesser number of months. This is to avoid any question or challenge by the IRS that the assessment was just part of the maintenance. It is also important when selling the unit in computing the gains, less capital improvements..