" No they're not. No they're not because property taxes are charged from the municipality in which you live. And your condo fees are paid to the management company."
Condo fees are a significant cost when buying a condo. Wonder if they include the property tax as well? In this episode, we discuss if property taxes are included in your condo fees and if you can claim the fees from your taxes.
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Transcription:
Karl Yeh:
Hi, everyone, welcome to another edition of Home Buyer's School.
Today I'm joined by Karen McDonald, Community Manager with Brookfield Residential. And the question we're going to answer is:
Are property taxes included with my condo fees?
Karen McDonald:
No they're not. No they're not because property taxes are charged from the municipality in which you live.
And [00:01:00] your condo fees are paid to the management company.
Karl Yeh: Okay.
Karen McDonald: So they are separate completely.
Karl Yeh:
So when we talk about taxes, though, are there any taxes included in the condos itself?
Karen McDonald:
Generally not, no. Real estate taxes, again, they're separate from your condo fees.
You're paying for the management company to take care of all of the maintenance of the development.
Karl Yeh: Yeah.
Karen McDonald: Real estate taxes are paid for ... it's paid directly to the municipality. So they're separate entities [00:01:30] completely.
Karl Yeh:
So can you deduct or claim condo fees from your taxes, too?
Karen McDonald:
No, not on a regular basis.
Only if you're using, say if you're using your home as an office space.
You may be able to claim a portion of that towards your taxes. If you have a multifamily home as a rental investment property.
Karl Yeh: Yeah.
Karen McDonald:
You may be able to claim a portion of those condo fees on your taxes. But in general, no.
Karl Yeh: No.
Are condo [00:02:00] fees tax deductible for a rental property?
Karen McDonald: To some degree they are.
Karl Yeh: Some degree, okay.
Karen McDonald: Yeah, they can be. You may be able to collect a portion of that money back.
Karl Yeh:
Perfect. Well, thank you very much Karen. Thank you very much for joining us and we'll catch you next time.
Your turn:
Let us know if you have additional condo questions or home buying questions that we can answer by submitting them in the comments section below.
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About Karen McDonald:
This is my 12th year with Brookfield Residential. I have been involved in 8 sites now with 7 in multi-family and 1 Single Family. I received my certification as a New Home Sales Professional from PHBIA in 2008.
