The 2026 Senior Tax Guide: How the "One Big Beautiful Bill" Affects Cooperative Deductions

Taxes aren't the most exciting topic. But if you're thinking about a big move, it's worth knowing how the numbers work. This is especially true when you're looking at a senior cooperative.

I'll keep things simple and share what I tell my clients about taxes and co-op living. We want you to feel confident about your choices.

A quick note: I'm a real estate specialist, not a tax expert. This information is just to help you learn. Please talk to your tax professional about your own situation.

1Can You Deduct Anything as a Co-op Owner?

Yes, you can. This is one of the big perks of owning a co-op instead of renting.

When you live in a co-op, you pay a monthly fee (the co-op's shared operating cost). Part of that fee goes toward the building's property taxes and mortgage interest. The IRS lets you deduct your share of those costs on your federal tax return.

Each year, your co-op will send you a statement. It shows exactly how much of your fees went toward these costs. Make sure to save this paper for your tax preparer.

2What About Selling Your Current Home?

If you sell your home to move into a co-op, you might not have to pay taxes on your profit. This can save you a lot of money.

Right now, if you're single, you can keep up to $250,000 of profit without paying federal tax.

If you're married and filing together, you can keep up to $500,000. Usually, you just need to have lived in the home for two of the last five years.

For many of my clients, this is a huge relief. It means they can use the money from their old house to buy their new co-op share without a big tax bill.

3What Changed in 2026?

Tax laws change often, and 2026 brought some new updates. A new law, often called the "One Big Beautiful Bill," has changed some tax benefits for seniors.

This new law might affect your deductions or how much you can save. Tax experts are still studying the details. It's a great topic to bring up with your CPA this year so you aren't caught off guard.

4What Should I Do?

Here are a few simple steps to help you stay on track:

1. Talk to your CPA first. A good advisor can help you time your move to save the most on taxes.
2. Get your year-end statement. Your co-op provides this to show your share of taxes and interest.
3. Keep good records. Save your purchase papers and your monthly fee statements in a safe place.

The tax benefits of co-op living are a great way to help your budget. They work best when you plan ahead and ask questions.

If you want to talk about the big picture of moving to a co-op, I'm here to help. I can also connect you with a trusted tax professional if you need one.

Contact Lisa | Strategic Partners

— Lisa Dunn, Senior Cooperative Specialist, RE/MAX Results

Have a house to sell first? I’ll help you time it. See what your house is worth or book a free 30-minute call.