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Yes, as these are improvements, and you are using this as a second home, the improvements WILL add to your tax basis for capital gains purposes
Homeowner associations were originally established so that condo owners would have the same tax treatment as individual homeowners. Thus homeowner associations are acting as agent for the unit owners. As a result, the unit owners are able to add some or all of the special assessment to their basis (=cost) in their condos, ultimately reducing their gain upon sale of the unit ... WHEN, those assessments are truly improvements and not regular maintenance
Further, since this was not a rental, and has never been placed in service as a rental, depreciation is not applicable at all (You were never able to deduct it, and, there's no recapture either, as there can be when the property is used as a rental, and the owners did take - or should have taken - depreciation as a deduction)
Basically - The deductions a condo owner (where the property is not a rental) can take will be the same that an individual homeowner can take. Mortgage interest and points paid on purchase or refinance are deductible, of course, subject to a series of limitations though. Real estate taxes paid are deductible. The cost of major improvements can be added to the unit's basis for the purpose of reducing gain upon sale. There are tax credits, such as energy credits, that are also available to condo owners. In general, insurance, homeowner dues, utilities and maintenance are not deductible.
Hope this helps
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Lane, thanks very much. The only other question I have is to make sure there is nothing different about the way I would adjust the cost basis for this non-rental second home from the way I would handle it in connection with my principal residence. Sorry I missed the chat as I was off line.
Thanks so much.