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Not applicable
posted Jun 6, 2019 12:51:44 PM

Can HOA fees be added to cost basis or deducted from sale gain as selling expenses?

I understand HOA dues are not deductible either when buying or when selling your primary home. How about one time HOA fees during sale?

On the home selling statement there is a "Transfer fee to HOA association company" (owner transfer). Can this be deducted from the gains of the home as selling expenses?

On the buying statement I also had the following 2: "HOA Survey to Get Doc's Now.Com" and "Transfer Fee to HOA association company". When calculating adjusted home basis, can these 2 be added to home cost basis?

In general, what do we do with HOA one time fees during sale?

0 5 20254
5 Replies
Expert Alumni
Jun 6, 2019 12:51:45 PM

HOA fees paid at home purchase can be added to the basis of a home.  Here's more info on that:

https://ttlc.intuit.com/replies/3996369

Unfortunately HOA fees are not deductible as sales expenses.  Here's more info on that:

https://ttlc.intuit.com/replies/4633905

New Member
Mar 25, 2020 10:59:03 AM

Can HOA fees for capital expenses be added to cost basis or deducted from sale gain as selling expenses?

Expert Alumni
Mar 25, 2020 12:46:45 PM

What type of capital expenses?

New Member
Dec 29, 2023 6:50:11 PM

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.

Level 15
Dec 29, 2023 7:09:00 PM

No. HOA fees were either a personal expense or an investment expense but if the latter they had to be deducted in the year paid and for the years 2018-2025 investment expenses are not deductible.