Can annual HOA fees paid over a 20 year period for a vacant lot be deducted from the basis of the lot. A large portion of these annual fees are paid to maintain and enhance the value of amenities for gated community. These include a 9 hole golf course, marina with 4 docks, a swimming pool, several beachfront parks, private roads, a clubhouse, and a community office, guard gate, maintenance facility, etc. In addition to paying into reserves for future maintenance or replacement, the annual assessment is also used to pay salaries and benefits for several full-time employees and a HOA manager. We are told these amenities greatly increase the value of our property. Since we have not built on our lot for the past 20 years but have paid these annual assessments, we have received no benefit from use of the amenities other than what value they add to the property when we sell it.
