Can I deduct HOA fees for investment property -- raw land.

[MichaelL1 · Accepted solution]

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). 

[AJKitten]

I cant seem to find where to put this deductible expense. Can someone give me more clear instructions? Thanks

[MichaelL1]

Which Schedule are you putting it on?

[skips81]

Where to deduct Home Owners Association fees

[MichaelL1]

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.

[skips81]

Held for investment only is how my land is currenly being used

[skips81]

There is no box for HOA fees

[MichaelL1]

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).

[skips81]

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

[MichaelL1]

Investment fee box

[skips81]

ok, so I followed all of the instructions and when I hit "no", then "yes" it takes me to a page that says "tell me about your less common expenses" the "investment fee box" page doesnt show up. Where did I go wrong?