HOA Fees

AustinTW · ‎February 22, 2023

When selling a lot (no house on it) held for investment, can HOA fees be added to basis?

Vanessa A · ‎February 22, 2023

If the property was held for investment only and not rented or otherwise used in business, then this would be an investment expense that is not tax deductible under current tax laws. HOA fees you pay while owning the house cannot be added to the cost basis of the house. This expense was deductible as an itemized expense in excess of 2% of your AGI prior to 2018, but currently it is not a deductible expense. However, depending on the state you live it, you may still want to enter it in TurboTax as some states will allow a deduction for Investment Expenses.

If you rented out the land, then it would be deductible as a rental expense.

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AustinTW · ‎February 26, 2023

Want to thank Vanessa A for responding to my question on HOA Fees. It wasn't the answer I wanted but it was an answer I am confident was correct. I had googled the internet every which way and was not able to find an answer. And, of course, the price paid for this professional advice made for a nice extra!