What portion of the maintenance is tax deductable? Why?
Because of the way the building was financed with a $85.6 million dollar loan 60% of the monthly maintenance is tax deductable as it goes to the loan interest. So if your monthly maintenance is $1,000 you my deduct $600 a month from you taxable income (does not mean you get that much back). Talk to your accountant about what it will mean to your income and how much you will really get back. To offset some of the monthly cost you can work with your accountant to change your withholdings. The original $85.6 million mortgage for Citylights was financed by the A.F.L.-C.I.O. Housing Investment Trust, with the mortgage insured by the Federal Housing Administration, permitting the trust to charge only 7.75 percent interest a year.
