Are HOA fees and special assessments deductible on a second home?

[AlanT · Accepted solution]

Unfortunately, homeowners’ association (HOA) fees paid on your personal residence are not deductible.

However, if you have an office in your home that you use in connection with a trade or business then you may be able to deduct a portion of the HOA fees that relate to that office.

If the home is a rental property then you can deduct the HOA fees as a rental expense.

Assessments are also not deductible.  They are capital expenditures that would increase the basis in your home which could offset gains when you sell down the road.