special assessments

[tcerny51]

Client is being assessed a special assessment on her condo of around $20,000. The condo is a rental unit. Can the client deduct the special assessment in current year or does it get added to the basis of the unit?

[JOFI]

My guess:  it is related to a long-term improvement that will enhance the permanent value of the property, and hence you should capitalize and depreciate.  It would be a stretch to deduct as a current year expense, would be a red flag for IRS audits, and if the rental losses are suspended, probably doesn't make much difference anyway.

[thumperness26]

Are there concrete facts based on how the increase hike of special assessments should be treated?  I agree with the responder to this answer, but not aware of what this expense should truly be entered into the tax as?