The following is a reproduction of a memo sent on 11 January 2017 to all shareholders by our co-op’s certified public accountants: Prisand, Mellina, Unterlack & Co., LLP. View/download the scanned memo (PDF, 223KB).
To: Shareholders of Nagle Apartments Corp.
Re: Personal income tax return data for 2016
Under the provisions of Section 216 of the Internal Revenue Code, a tenant stockholder of a Cooperative apartment is entitled to deduct from personal gross income a proportionate share of interest and real estate tax paid or incurred by the Cooperative Corporation. Note that these deductions are generally available if the taxpayer itemizes tax deductions.
For the year 2016 your per share individual income tax deductions are as follows:
Mortgage interest $10.2220 per share
Real estate tax $21.2860 per share
For the year 2016, if you were granted any real estate tax abatements, reflected in a maintenance credit or received by check, your real estate tax deduction as stated above should be reduced by the amount of the abatements you received.
In order to compute your total deductions for 2016, multiply the number of shares owned by you, as indicated on your stock certificate, by the amounts per share stated above. If you became a stockholder, or sold your stock in the Corporation during 2016, you are permitted to deduct a fractional part of the figures, based on the proportionate part of the year you owned the stock.
Contributed capital in 2016 was $18.0580 per share for mortgage amortization and $7.9368 per share for capital assessment. This is not a deduction, but an increase in the basis of your investment.
Should you have any questions regarding the application of the aforementioned information to your individual income tax returns, please consult your personal tax advisor.
PRISAND, MELLINA, UNTERLACK & CO., LLP
Certified Public Accountants