Are Homeowner Association (HOA) Fees Tax Deductible?

AdminBy AdminNov 3, 20170

Homeowner Association Fees, or HOA Fees, are the payments a homeowner makes to a homeowners’ association or a condominium or townhouse association for upkeep of the common areas such as landscaping, playgrounds, pools or a lobby. Fees are usually paid monthly but can be assessed on an annual or semi-annual basis.

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As an expense of home ownership, can you deduct these fees from your income taxes? The IRS does not accept this as a deduction. You can deduct state and local property taxes because those are assessed by government bodies. The HOA or condo association is a private entity, therefore the fees are not deductible.

However, if you do not live in the home or unit but keep it as a rental property, you can deduct the HOA fees as part of your property maintenance expenses. These are entered on Schedule E of the 1040 form. Alternately, you can list them on the “Other” line of the same schedule.

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One caution: if you live in your home or condo for part of the year and rent it for part of the year, the HOA or association fees are only deductible for the part of the year that the property is rented. If you pay yearly or semi-annually, you will need to pro-rate the fees to determine what is paid on a monthly basis, and deduct the fees only for the months that you rent out the property.

For more information, see IRS publications 530 (Tax Information for Homeowners) and 527 (Residential Rental Property).

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