My rental property recently had an one time repair. The HOA presented two options for owners to pay for the repairs cost:
#1 Pay off in lump sum ($10k)
OR
#2 Pay off over the period of 5 years via increased monthly HOA fee (increase of $200/month). Interest rate is roughly 5%.
I have sufficient cash to pay off in lump sum, but the question is which is better for my taxes? From past experience think i was able to deduct monthly HOA fee as expenses. If I were to choose option #1 is the lump sum be deductible as well?
Thank you for reading, appreciate any responses.
