Massachusetts Real Estate License Practice Test 2025 – The All-in-One Guide to Master Your Exam!

Condominium and cooperative owners are permitted to claim tax deductions on specific expenses that pertain to their ownership. One primary benefit is the ability to deduct mortgage interest and real estate taxes on their federal income tax returns. This deduction is available because interest paid on mortgages is generally tax-deductible, allowing owners to reduce their taxable income. Similarly, real estate taxes are also deductible, providing further financial relief at tax time.

While other expenses related to property ownership, such as maintenance costs or insurance, may be deductible under certain circumstances, they typically do not qualify as standard deductions for personal residences. Deductions for rental income are also applicable, but those primarily pertain to landlords rather than individual condo or coop owners who occupy their properties. Therefore, the correct answer highlights the specific right condos and coops have regarding mortgage interest and real estate taxes, marking a significant advantage for these property owners in managing their tax liabilities effectively.