Homeowner Association’s real estate taxes, deductible on my return?

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This entry was posted on Friday, February 5th, 2010 at 4:09 pm and is filed under Estate Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “Homeowner Association’s real estate taxes, deductible on my return?”

Scottee25 on February 5th, 2010 at 4:36 pm

I was under the impression that non-profits were exempt from property-taxes. Could be wrong. Regardless, I seriously doubt you can deduct any property taxes your HOA would have to pay. That’s like a tenent in an apartment complex trying to deduct on the property taxes the landlord has to pay simply because they pay the landlord rent.
Laissez-Faire Guy on February 5th, 2010 at 4:48 pm

HOA does not usually pay the property taxes. That tax bill gets sent to the individual unit owners, at least it does with mine.

Property taxes are deductible. HOA dues are not.
stucaz on February 5th, 2010 at 4:54 pm

laisses is correct, and you can deduct property taxes that you pay only. Why would you deduct something you didnt pay?

If you have a rental property then you can deduct HOA dues as well.
WealthBuilder on February 5th, 2010 at 5:06 pm

NO!

HOA dues are NOT DEDUCTIBLE.

ONLY if the HOA sends a statement DETAILING the pro-rata tax amount for each household can you deduct as property tax. You can’t make an arbitrary decision or calculation for yourself. This is commonly done in large condos in New York, but never for HOA’s. The state of NEw York made condo owners responsible for collecting the taxes and no other entity has that authority.

I’m sorry I can’t cite chapter/verse today. but I’ve prepared over 25000 returns.

The tax code section you are looking for would tell you that you can deduct taxes and mortgage interest. It will not say “you can’t deduct so-and-so”.

WealthBuilder
Tax Advisor
WiseOwl on February 5th, 2010 at 5:24 pm

Helping Wealthbuilder out.

The HOA pays real estate taxes on property it owns. An HOA can become a non-profit only if its activities benefit the community, and not just members of the association.

IRS Publication 530 says you can deduct assessments and property taxes paid to local governments, but not to associations.