Ah, that makes sense. I had forgotten that the real estate tax and mortgage interest with respect to the common areas were included in the co-op maintenance fee. However, they I thought they could only be taken on Schedule A
), rather than Schedule E.
The answer is, in general, yes. It's possible that there could be some capital expenses in the maintenance fee, but any maintenance fees can be deducted for a rental property
. As an example of a capital expense, upgrading the roof (as opposed to a simple roof repair) would be a capital expense in the hands of the association, so is passed through to you as a capital expense toward your share of the common areas.
Unless you started renting it on January 1, you'll need to "pro-rate
" the annual fee between the part allocated to the time you were living in the unit and the time it was used as a rental, and move the appropriate amounts to the respective forms. In general, I would put unspecified association fees on Schedule E line 11 (Management fees), but other lines could probably be justified.
I'd need to see the line-item allocation to be sure