It is deductible, but where is determined by how the land is being currently used.
If the land is rented out (as pasture for example), the the HOA fees are a deductible as a Rental expense then.
If you are a land developer, then it is deductible as a Sch C business expense.
If the land is not rented and held for investment only, the the HOA fees are a deduction as "Investment expense."
For the Investment Expense go to"
Federal Taxes (may be Personal tab in self-employed)
Deductions and Credits, then scroll down to "Other Deductions and Credits" and select 2nd from bottom: "Other Deductible expense" say, No, then Yes. It is limited to deducting only the amount in excess of 2% of the adjusted gross income (TurboTax computes this, you just need to enter the amount).
It is deductible, but where is determined by how the land is being currently used.
If the land is rented out (as pasture for example), the the HOA fees are a deductible as a Rental expense then.
If you are a land developer, then it is deductible as a Sch C business expense.
If the land is not rented and held for investment only, the the HOA fees are a deduction as "Investment expense."
For the Investment Expense go to"
Federal Taxes (may be Personal tab in self-employed)
Deductions and Credits, then scroll down to "Other Deductions and Credits" and select 2nd from bottom: "Other Deductible expense" say, No, then Yes. It is limited to deducting only the amount in excess of 2% of the adjusted gross income (TurboTax computes this, you just need to enter the amount).
I cant seem to find where to put this deductible expense. Can someone give me more clear instructions? Thanks
What is your investment currently being used for? Rental? Raw land being held? Sch C business? See answer above as it gives more detail on where to deduct these HOA fees.
Held for investment only is how my land is currenly being used
There will not be listed HOA fees, just investment expenses such as Safty deposit box fees, investment advisory fees, this is where this belongs.
Under Federal taxes go to:
Deductions and Credits, then scroll down to "Other Deductions and Credits" and select 2nd from bottom: "Other Deductible expense" say, No, then Yes. It is limited to deducting only the amount in excess of 2% of the adjusted gross income (TurboTax computes this, you just need to enter the amount).
Yes, I see the "Safty deposit box fees" Investment adivosry fees" you said "this is where is belongs".... which box does it belong in? The investment advisory fee box? Im still confused