Question: What is the difference between a condo fee and a co-op fee?

Answer: A co-op fee typically includes an underlying mortgage and property taxes. Mortgage interest and property taxes are typically deductible, thus much of a co-op fee is usually deductible.

The precise percentage you can deduct will vary according to your particular co-op. See the co-op treasurer and your tax professional for details.

A condo fee typically includes payments for such items as maintenance and management. These items are not generally deductible. Condo owners pay mortgage and property tax costs directly, and such costs -- while generally deductible -- are not included in the condo fee.

A condo fee can be a deductible cost for an investment owner.

For details, please speak with the condo treasurer and your tax professional.