Are strata levies tax deductible?
One Question that we are always asked by clients is " Is our strata levies tax deductible". The answer is both yes & no! If your strata unit is occupied by you & your family ( owner occupied ) then you unfortunately can not write off strata levies. On the other side, if you run your own business, self employed or the unit is a rental. You will be able to write off all or partial amounts of the Levi.
When are strata levies tax deductible?
If you rent or lease your strata unit to tenants, then you will be happy to know that all your strata fees / special levies are 100% tax deductible off your taxes. When a owner lives in the unit and runs any kind of business, as in office space or even renting a room out. Then you are able to write off a portion of your Levi in proportion to the space that is being used for business.
Keep in mind if your only using a portion of the strata lot as business, depending on the sqft it may effect your principal residence exemptions. You will want to go over all these details with your tax account and to find out more information on your personal scenario.
The good news once the work is done & the project is completed. If the cost to complete the project was less than the amount of the strata Levi, then by law all of the remaining money needs to be refunded to all owners in proportion to the amount allotted to each unit ( unless voted to direct the remains to the contingency fund ).
If you have any questions on when are strata levies tax deductible please feel free to contact us at
604-726-1023 Call or Text Anytime!
Licensed Realtor, Strata Manager & Author