Are homeowner's dues tax deductible? I would like to know the answer to this question in the case of a rental property as well as an owner occupied property.
HOA fees are an allowed operating expense on your Schedule E.
For your owner-occupied, personal residence, HOA fees and (generally) HOA special assessments are non-deductible personal expenses. Other special assessments such as you might get for the municipal water/sewer tap are added to your cost basis as a capital improvement.
The only deductions allowed on your personal residence are home mortgage interest and property taxes. Furthermore, these are only allowed if you itemize your deductions on Schedule A.
Talk to your accountant, but they are deductable for a rental. Don't think they are deductable for your primary residence.
-e-
Regular HOA dues are not on a primary residence. Special accessments are.
HOA fees are an allowed operating expense on your Schedule E.
For your owner-occupied, personal residence, HOA fees and (generally) HOA special assessments are non-deductible personal expenses. Other special assessments such as you might get for the municipal water/sewer tap are added to your cost basis as a capital improvement.
The only deductions allowed on your personal residence are home mortgage interest and property taxes. Furthermore, these are only allowed if you itemize your deductions on Schedule A.