Are HOA fees tax deductible? Can you write them off, in my case they pay my property taxes.?

Question

Are HOA fees tax deductible?

My HOA's are $1,100 a month and cover my property taxes and all utilities. Is a portion of that tax deductible?

Also, if I'm only renting out one room in my house, does it qualify as a rental property? Does that make a portion of my HOA's tax deductible?

Thanks for your time.

Answer 1

HOA fees are not deductible. Real estate taxes are. If it is included you should get a statement at the end of the year spelling it all out. I have never heard of the HOA fee covering taxes. IF you want to try claiming it as a rental you have to claim the income also.

Answer 2

Only the portion of the HOA fee that represents the property taxes on YOUR unit is deductible.  Normally your property taxes are not included in HOA fees and the portion that represents the taxes on the common areas isn't deductible by you.

If you rent out a room in your home you may consider that portion of your home as a rental property.  You'll claim the rental income and the proportional share of expenses on Schedule E.  However this will complicate things when you sell as any depreciation allowed or allowable must be recaptured at sale time and is fully taxable even if you qualify for the exclusion of gain on sale of a personal residence.  I'd suggest that you have a local tax pro walk you through this BEFORE you take the plunge so that you get your tax returns filed properly while you're renting out the room and setting up the necessary bookkeeping system to keep in the IRS' good graces.

Answer 3

if you are renting  a room in a house, why are worrying about HOA,, that should be the concern of the owner... Now if you are the owner, then there should be a breakdown how the HOA is spend per month.. If you are the owner, the only thing you can write off is the property taxes and insurance...

If you are renting a room out, you are suppose to report added income for rental income, added to your yearly income, not a write off.. And no it doesn't apply as rental property...

Answer 4

I've never heard of an HOA covering property taxes before, but....

Mortgage interest and property taxes are deductible IF you itemize deductions.

Renting out one room of the house makes most expenses (partially) deductible, to the extent of gross rental income.  If the tenant doesn't have a separate entrance, and you're living in the house, you probably are forbidden from claiming a loss on Schedule E, and otherwise deductible expenses are counted first, so the proportionate share of your mortgage interest and property taxes must be claimed on Schedule E rather than Schedule A.

Answer 5

Unless they qualify as rental expenses, you can't deduct them.

As for renting out your room, you are declaring the rental income,right?  See publication 527.