Can you write off condo fees

They also often pay for shared amenities including community pools, playgrounds, parks, and clubhouses. On occasion, a portion of your HOA fee is placed into a savings account to help fund larger projects such as repaving, sewer line upgrades, or community expansion.

Considering that some HOA fees can run from hundreds to thousands of dollars per year, it may already feel somewhat like dealing with taxes. Still, it is possible to deduct certain portions of those fees in your next IRS filing.

If your property is used solely for rental purposes, the IRS will allow you to deduct the entirety of your HOA fees as a rental expense. However, any special fees or portions used as a special assessment for improvements would not be allowable. That said, in many cases, you should be able to recover a share of the cost for improvements by taking depreciation. What if you rent out part of your property, but use the rest as your primary residence?

You should know that we do not endorse or guarantee any products or services you may view on other sites. Tax information center : Filing : Adjustments and deductions. No matter how you file, Block has your back. If your condo complex makes capital improvements to the property, you may be able to recover some of those costs, as well, in the form of reduced capital gains tax on profits when you sell.

When you improve a property that you own, you're allowed to add the cost of those improvements to what you paid for the property. Since capital gains are based on the difference between your total cost and your selling price after fees and commissions, those improvements help reduce your taxable profit. To claim this adjustment to your cost and your profit, get the information on what your condo spent on major improvements from its board or its board's accountant. When you own a condo, you get the same write-offs that you would get with a house.

You can still write off your home mortgage interest, subject to the same rules as a single family residence.

Your property taxes are also deductible. As an aside, I did write an article recently about a taxpayer that similarly converted a property to an income-producing property. You can read that article here. With tax season is full swing, Globe Investor columnist Tim Cestnick is answering one reader question online each week in the runup to the filing deadline. Please note that Mr. Cestnick will not be answering detailed questions about a person's individual tax returns.

Preference will be given to questions with a broader scope. For stories, videos and tips about taxes, be sure to visit the Globe Investor Tax Centre website for daily updates.

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