@Carl wrote:
Every new purchase of a house in this HOA area requires a 1 time $4000 payment to the Recreation HOA plus yearly dues.
Report the one time payment and any additional monthly dues actually paid in 2022 as a Miscellaneous Expense, and just label that expense for what it is: HOA Fees.
If the one-time payment could be considered to be a capital contribution (which is common in many HOAs with amenities), then you most likely need to add the payment to your cost basis, @Eddie Glastname, rather than deduct the payment as an expense.
