Shareholders in a co-op corporation are considered by the Internal Revenue Service to be homeowners. As a shareholder, you are entitled to deduct your share of the real estate taxes and mortgage interest paid by the cooperative. If you obtained an individual mortgage to purchase your shares in the corporation, you are also entitled to deduct any interest paid on that loan.
At the beginning of every year you will receive a letter from the co-op’s accountant Robert Davidian that indicates how many dollars per share for (1) real estate tax and (2) mortgage interest you will be allowed to claim as itemized deductions.
If you were granted any real estate tax abatements or STAR credits during the year, which were reflected as maintenance credits or received by check, your real estate tax deduction must be reduced by the total amount of the abatements you received.
The interest paid on any individual mortgage you may have is reported on a Form 1098 sent to you by your financial institution.