Good day. My siblings and I inherited my mother's home, along with a slough of unpaid HOA fees. After a year of probate, we sold the house; and based on the FMV at the time of my mother's death, we sold with capital gains (even after figuring improvement costs, legal fees, etc necessary to sell). In order to sell, we had to settle the accumulated HOA fees (including late fees) and property taxes. As far as I can tell, the property taxes we paid are deductible; but is our payment of the HOA fees deductible or can it be used to increase the cost basis? (Note: we did not live in the house, but did not rent it either, and we owned it less than two years). Many thanks.
