PaulaM
Employee Tax Expert

Deductions & credits

Normal yearly operational HOA fees would not be included in basis or sellers expense. The lender-required one-time estoppel fee is not considered a normal operational expense, in my opinion and would only arise in the context of a sale. Therefore, it is distinct from regular yearly HOA fees and should be treated accordingly.
 

However, if you wish to take a more conservative approach, you could opt to exclude it altogether.

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