The Meter is Running
The Habitat Article Archive includes the full text of all of our
magazine articles dating back to 2002. You can view 3 articles per
month for free. (Repeat views of the same article don’t count
against your monthly limit.)
To read more, purchase a print subscription or a daily or yearly All-Access Pass
and get unlimited access to the Archive. Prices start at 1.95.
You've reached your free article limit for this month.
To read this article and gain unlimited access to the Habitat Article
Archive, which includes the full text of all our magazine articles
dating back to 2002, purchase an All-Access Pass.
41 legal experts on game-changing laws, rules, and cases.
AUTHORAndrew Brucker, Partner, Montgomery McCracken
PAGE #p. 38
IRC SEC. 216
A tenant-shareholder in a cooperative corporation will be allowed as a deduction the shareholder’s proportionate share of real estate taxes, as well as the interest on the corporation’s indebtedness.
"Every co-op has to be concerned not only with the laws of governance but also with the tax laws. Special tax laws were created to give co-op shareholders tax advantages similar to those enjoyed by homeowners. Boards must remember that in order to keep these tax benefits, the rules concerning non-shareholder income must be followed, and that when issuing new shares, there must be a reasonable relationship between the new shares and all outstanding shares. If you fail to comply, there are real fiscal and monetary consequences."
To read the full lecture, visit: http://bit.ly/ABrucker