Florida Real Estate Practice Exam

With cooperatives, the resident's share of mortgage interest and real estate taxes is ______.

1. Deductible only on the board's tax returns

2. Deductible on personal income tax returns

3. Not deductible on personal income tax returns

4. Paid by the board

The correct answer is: Deductible on personal income tax returns

With cooperatives, the resident's share of mortgage interest and real estate taxes is deductible on personal income tax returns because the resident owns shares in the co-op corporation, making them eligible for tax deductions on their share of property taxes and mortgage interest. Option A is incorrect because the resident, not the board, is responsible for reporting these deductions on their personal tax returns. Option C is incorrect because, as previously mentioned, the resident is eligible for tax deductions. Option D is incorrect because the board does not pay for the resident's share of mortgage interest and real estate taxes.