Renovation Credit

Can't answer a) or b). But you should consider the tax implications (not good or bad--just be aware and you judge for your own situation). A higher purchase price sets your cost basis higher so upon resale I would think you will have to claim less capital gains if the unit appreciates in value. On the other hand, I don't think you can deduct the money you are "credited" as money you spent for capital improvements when it comes time to sell and calculate your capital gains. It makes sense that it is only one or the other--you can't double dip.

What you propose does have tax implications and I would definitely consult with an attorney and accountant so all the angles are illuminated for you before proceeding.

I would be very careful and at least do the following. Consult with a lawyer and have a seperate agreement with seller. If the board is very detailed orientated, maybe talk to them and also the managing agent. You don't want any "misunderstanding". Does the board require an escrow deposit based on total reno budget and how would work? The bumbed up sale price may have tax implications for the seller and are they aware of that?

So, it wouldn't stop me from doing it but I would want to be very comfortable with my position before.