In the spirit of trying clear up some misinformation floating around on the forum regarding home sales & HOA fees, I wanted to offer this opinion:
HOA Estoppel/Status Letter fees, if paid by the seller and a requirement of the closing, are then considered includable seller expenses. They are not added to the basis but are treated as a reduction on any gain of the sale. This is reflected in an adjustment on 8949, along with the other includable selling expenses.
In summary, some specific HOA related costs are indeed includable seller expenses. Regular HOA fees incurred while owning the home such as HOA dues and special assesments are not.
SE
