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New Member
posted May 31, 2019 6:17:16 PM

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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1 Best answer
Level 15
May 31, 2019 6:17:25 PM
5 Replies
Level 15
May 31, 2019 6:17:18 PM

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

Alumni
May 31, 2019 6:17:19 PM

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?

New Member
May 31, 2019 6:17:21 PM

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

Alumni
May 31, 2019 6:17:23 PM

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.

Level 15
May 31, 2019 6:17:25 PM