» No Label » Can I Deduct HOA Fees on Rental Property?

Can I Deduct HOA Fees on Rental Property?

Depending on the property, you may have to pay homeowners association (HOA) fees. The HOA collects the fees from all the homeowners and uses the money for repairs and maintenance of the common areas. If you rent out the property, you may be able to deduct your HOA fees.

Qualifications

    The Internal Revenue Service only requires you to pay taxes on your profits. As such, you can deduct your income by eligible expenses to reduce the amount of taxes you must pay. These expenses must be "ordinary and necessary, and not extravagant," according to TurboTax. As the owner of a property in an HOA, you must pay HOA fees or face various consequences, including foreclosure. As such, HOA fees qualify as an expense of your rental business.

HOA Deduction Amount

    If you rent out the entire property, you can usually deduct the entire amount of HOA fees you pay for the period you rent the property. For example, if you pay $100 per month in HOA fees, you can deduct $1,200 each year. If you only start renting out the property in July, you can only deduct $600, which is the amount of HOA fees you pay for six months of the year. If you rent out a portion of the home where you live, you may only be able to deduct a percentage of the HOA fees. The percentage depends on the size of the rental portion of the property.

Record Keeping

    As a landlord, make a habit of keeping records of all the documents relating to the rental property. These documents include receipts and correspondences. Depending on your case, you may have to prove your expenses to the IRS. As such, you must keep the receipts you receive from the HOA to make it easier for you to claim the deduction. Realty Times recommends that you keep documents for seven years.

Claiming the Deduction

    You claim the HOA fees on your rental property by listing it on the Schedule E, Supplemental Income and Loss, when you file your taxes. Calculate the amount of HOA fees you pay over the course of the tax year and record it in the appropriate field. Add up all your income and expenses to determine your taxable rental income amount. After you complete all the paperwork, file Schedule E with your Form 1040.


  • What Can I Deduct In a Mortgage Refinance? - TurboTax

    turbotax.intuit.com Support Other Deductions and Credits

    What can I deduct in a mortgage refinance? Qualified points, pre-paid interest, primary residence, second home, and rental property.


  • Can I Deduct a Loss on My Second Residence? - Budgeting Money

    budgeting.thenest.com Taxes Tax Deductions

    Tax rules for second homes are complicated. A lot depends on how you use your second home. That will affect how you claim any losses, whether it's from storm damage ...


  • Do I have to pay the HOA fees, after foreclosure and after bank ...

    www.trulia.com/voices/Foreclosure/Do_I_have_to_pay_the_HOA_fees...

    Do I have to pay the HOA fees, after foreclosure and after bank has placed property for sale? Who owns condo? Find answers to this and many other questions on Trulia ...


  • Are HOA fees tax deductible? Can you write them off? - Yahoo!

    answers.yahoo.com/question/index?qid=20070322140757AAplyjz

    Mar 22, 2007 What about if your home is your home office? Can you deduct the annual HOA dues as Other Expenses related to maintenance of your home [office]?


  • Can you deduct property taxes in ontario on your income tax

    www.easyrate.ca/qna/Can_you_deduct_property_taxes_in_ontario_on...

    Can you deduct property taxes in ontario on your income tax return: Canada ontario can you write of condo fees and mortgage for an income property


  • Are HOA fees tax deductible? Can you write them off, in my case ...

    answers.yahoo.com/question/index?qid=20080815161736AAOYvd6Last updated: Aug 16, 2008 6 posts First post: Aug 15, 2008

    Aug 15, 2008 Best Answer: I've never heard of an HOA covering property taxes before, but.... Mortgage interest and property taxes are deductible IF you itemize ...


  • How do I deduct fees and points for refinancing my rental property?

    www.hrblock.com/tax-answers/services/jsp/article.jsp?article_id=68169

    You must amortize points and fees to refinance or to purchase rental property over the life of the loan. You cant deduct them, like you can with the points and ...


  • HOA ASSOCIATION FEES - Property Management, Association

    www.accordhoa.com/why-accord/education-ii/hoa-association-fees

    What are Homeowners Association (HOA) Condo Fees? Homeowners Association (HOA) fees are funds that are collected from homeowners in a condominium complex


  • Can I Deduct My Rent on My Tax Return? eHow

    www.ehow.com Tax Information Tax Deductions

    Nov 25, 2012 Can I Deduct My Rent on My Tax Return?. Every year, millions of people file their taxes. And every year, millions of people overpay. Overlooking deductions ...


  • Can I deduct the closing costs from purchasing my home?

    www.taxslayer.com/support/article.php?id=475

    Back to List. Category: Finding Deductions Can I deduct the closing costs from purchasing my home?

You're reading an article about Can I Deduct HOA Fees on Rental Property? and you can find articles Can I Deduct HOA Fees on Rental Property? this is url https://rentingahomes.blogspot.com/2013/12/can-i-deduct-hoa-fees-on-rental-property.html,you may spread or copy and paste it if the article Can I Deduct HOA Fees on Rental Property? This is very beneficial to your friends, but do not forget to put the link Can I Deduct HOA Fees on Rental Property? as the source.

0 komentar


Posting Komentar