I purchased rental property in a gated community and recently sold it. HOA dues PLUS social membership country club fees are mandatory for homeowners. At closing, I was charged $2,500 for the social membership initiation fee. I did not have the option to decline membership. Can I add this expense that I paid at closing when I purchased the rental property to the cost basis? If not, could it be a deductible business expense since it was a mandatory expense to own the home? I think I know the answer but asking anyway.
