Hi There,

I hope someone can help me understand and clarify things for me. I have a Condo which is currently rented out. The condo board has recently requested every owner to pay special assessment of $8000 in two years time period. First Installment is due this year in December for about $5000.

Can anyone please help me understand if this cost can be counted as business expense or capital loss?

If this is a business expense, then my understanding is that I should be able to deduct it from the rental income.

If it is not a business expense, I am not sure how to take any tax reduction on my loss?

Many thanks for your help in advance.
Jignesh