Are Homeowners Association Fees Tax Deductible?

by Mary Abella, Demand Media
    Some neighborhoods have very active Homeowners Associations.

    Some neighborhoods have very active Homeowners Associations.

    Homeowners associations -- people either love them or hate them. The lovers feel protected from a neighbor painting her home purple and yellow. The haters feel constrained from painting her own home purple and yellow. Regardless, when you move into a neighborhood, you either have a Homeowners Association (HOA) or you don't. They aren't just for condominiums.

    HOAs Require Dues

    Dues for Homeowners Associations are standard. They may range from a minimum of $50 a month for small, older neighborhoods to more than $1,000 for condominium complexes that offer many services. If you do not pay the dues, you can get a nasty surprise at closing when you go to sell your lovely property: a lien will have been placed on it, and you won't be able to close the sale. Not fun!

    What Homeowners Association Dues Cover

    Homeowners Association dues usually pay for routine maintenance of common areas for such things as landscaping, sidewalk maintenance, and snow removal. Some associations handle security services, such as policing the neighborhood, and street lighting, utility access, and the upkeep of community amenities such as club houses, pools, tennis courts or walking trails.

    HOA Dues Are Not Tax Deductible

    Unfortunately, Homeowners Association dues are not tax deductible. According to the IRS's Publication 529, "Miscellaneous Deductions, for Use in Preparing 2009 Returns," while your yearly property taxes and some other home expenses are deductible, HOA dues are not.

    Other Home Expenses That Are Not Deductible

    Other nondeductible home expenses include any additional principal payments you make, depreciation of your home, and general closing costs and local assessments to increase the value of your neighborhood, such as construction of new sidewalks or utility connections. But forget about all of this and just keep smiling as you cheerfully deduct those property taxes.

    About the Author

    Mary Abella is an accomplished freelancer who has been writing since 1999. Her biggest success is an article about measles in "Better Homes and Gardens" magazine. She has also contributed articles to "The San Francisco Chronicle," "The Optimist," "Indiana Business," "Boating," and other national publications. Abella holds a Master of Arts in composition from Indiana University.

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