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Can I deduct the mortgage interest on a co-op?

You can deduct the amount of mortgage interest you paid for a unit you own in a cooperative housing corporation.

You must reduce the interest by your share of any patronage dividend that the cooperative receives since this is a refund of mortgage interest paid in a prior year, and you must itemize. If the corporation provides you with a Form 1098, it should show only the interest that you can deduct.

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