Tax Basis in condo association improvements

According to an online article from NOLO [link here: https://www.nolo.com/legal-encyclopedia ... ation.html],

The second type of improvements that you can add to your adjusted basis are capital improvements your homeowners' association makes to the building's common areas--for example, replacing a roof, an elevator, or a central heating and air conditioning system. Your pro rata share of the cost of these improvements should be added to your adjusted basis. Your homeowners' association should be able to tell you how much this is.

Does anybody here know where authoritative/good/*any* support for that conclusion might be found?

Worksheet 2 in Pub 523. Took about 60 seconds to find.

"Any special assessments for local improvements (such as special tax or condominium association assessments that aren’t merely for repairs or maintenance)"

Anyway, it's obvious common sense. As a condo owner you own part of the land and common areas. You also own part of the funds the HOA has for capital improvements. Or, maybe you are trying to pose a trick question, involving the difference between your share of capital improvement funds that you acquired when you purchased the property (already in your acquisition basis) and capital improvement funds that you contributed to after becoming an owner (basis adjustments).

If you were better acquainted with condo terminology and how condo budgeting and spending *aren't* well coordinated, you'ld know that the person who wrote that bilge in the IRS Pub wasn't well acquainted with them either. "Special" assessments aren't really "special" except for being out of the ordinary and any notion that some assessed and collected funds are identified to and actually used for pre-determined purposes is naïve. Cash is fungible, remember? "Reserve" funds *might* carry some sense of restricted purpose, but that's mighty awful hard to track, enforce, and account for.

LIkely my question had more to do with the statement "Your homeowners' association should be able to tell you how much this is" than with the rest of the explanation.

You have no clue what my acquaintance with condo budgeting and spending is. Do you have authoritative/good/*any* support for your conclusion?

According to my PPC documentation Rev Ruling 81-152 reads in part:

"To the extent capital assessments are, or have been made against the unit owners for the purpose of making the necessary repairs or replacements, or the association retains the amounts recovered in the suit against the builder and uses them for capital repairs, replacement, or improvements, the unit owners' bases, under Section 1016, will be increased."

I have always maintained that capital assessments increase basis. However, this assumes the association has done their due diligence and accounted for the capital assessments properly.