How do I deduct yearly homeowner association fees on my rental

[MargaretL · Accepted solution]

Homeowners association fees are not listed as a separate item, but you may enter a description and an amount in Any Other Expenses section.

1. Federal Taxes
2. Wages & Income
3. Rental Properties and Royalties - Follow the interview questions, you will arrive at your Rental Summary screen; You will be able to select Expenses and, after most common expenses and mortgage interest is entered, you can enter Any Other Expenses not listed previously (see pics.).

[carynels]

This is helpful reply.  What if my homeowner association as a part of its dues payments, includes homeowner's insurance for fire, wind and damage to the exterior portions of my townhouse?  For example, if the HOA property management firm has provided me with documentation that $800.00 of my $1,000.00 annual HOA dues pay for property insurance, is that an allowable tax deduction on my rental/investment property?

[tagteam]

---

@carynels wrote:

....is that an allowable tax deduction on my rental/investment property?

---

It would be allowable if the unit is a rental.

[Carl]

What if my homeowner association as a part of its dues payments

Basically, HOA fees are HOA fees. What the HOA users that money for just doesn't matter. It's still a deductible rental expense.

If you work through the rental expenses section, the *very* *last* *thing* you're asked for on the last screen of the expenses section, is Miscellaneous Expenses not reported elsewhere. Simply enter "HOA Fees", then the amount, and press on. The full amount entered is a deductible rental expense.

Doesn't matter what the HOA used it for. You are legally obligated to pay it per the ordinance or covenant you signed when you acquired the property. So it's a deductible rental expense.

[Scap]

In addition to the HOA fees...what if the HOA requires homeowners to pay for a club membership.  It is mandatory, like the HOA Fees.  Can this mandatory club membership fee also be deductible if this is a rental property?

[tagteam]

The fee is deductible (as a rental expense) if it is mandatory.

[Scap]

Thank you.