I have never worked with a NY coop before. New client, and it is their 2nd home.
They have an acquisition-debt mortgage on this apartment, and the coop also reports to them the per-unit amount of mortgage interest & property taxes.
They own x units. I see that their previous preparer took those per-unit amounts * x number of units, to determine this 2nd mortgage interest & their property taxes amount. The client states that all mortgage interest, on both their own & the coop's loans) is acquisition as they never cashed out.
Given that I've never seen this per-unit coop reporting system before, I'd like to double-check:
Is it reasonable to deduct (w/i limits) mortgage interest from their 1st mortgage AND from the coop pro-rata share mortgage reported to them?
Thank you for helping me out with your advice.