Special Assessments for Capital Improvements

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QUESTION:
if a condo assn has a special assessment for a capital improvement on the
building, is the amount of the special assessment tax deductible?  Also, how
is a capital improvement defined?
Thanks for your help.
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david ingram replies:
If the special assessment id for an improvement to the building and not the repair of an existing structure, it is added to Adjusted Cost Base and can be depreciated if it is a rental unit. Otherwise, it just disappears unless it is a second home, in which case you get to deduct it against the capital gain when you sell it.
In general, a capital improvement changes the use, the appearance, or the character of a building.  A repair, restores  something to the way it was after damage or wear.
Raising a roof two feet would be an improvement and a capital item.  Replacing a roof with new equivalent shingles would be a repair.
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