If you receive a refund or rebate of real estate taxes this year for amounts you paid this year, you must reduce your real estate tax deduction by the amount refunded to you. If the refund or rebate was for real estate taxes paid for a prior year, you may have to include some or all of the refund in your income. For more information, see Recoveries in Pub. 525. Jules Borbely True to their name, co-ops are cooperatively owned and managed by their residents, who all act as shareholders. Title to the building or complex is held by a corporation, which then grants leases to buyers. Generally, the day-to-day operations of a co-op are overseen by a governing board comprised of elected residents. A housing cooperative or co-op is a corporation whereby the owners does not own their units outright; instead, each resident is a shareholder. The percentage of shares are determined on the square footage of the unit. The common charges consist of real estate taxes, underlying mortgage, insurance, salaries, heat and the maintenance and operation of the common areas and the building system.