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Miller7448
New Member

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

 
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SweetieJean
Level 15

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

5 Replies
Carl
Level 15

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

No. HOA fees are not a deductible expense on a primary residence, regardless of who owns it.
bwa
Alumni
Alumni

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

How are you reporting this sale - on the installment basis, all in the year of sale, or is it tax-exempt due to the $250k/$500k exclusion?
Miller7448
New Member

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

It is tax-exempt due to the $250k/$500k exclusion
bwa
Alumni
Alumni

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

As it is tax exempt, even if you added the HOA fees to the cost of the property as a cost of sale it would only serve to decrease the already untaxed gain, resulting in no tax benefit.
SweetieJean
Level 15

I owner financed a condo. The buyer did not pay property tax or HOA fees for a year. I paid them. Can I deduct the payments?

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