taxes, hoa problems

Russ Asked:

Can I take a tax break for subidizing someone ...

Can I take a tax break for subidizing someone elses hoa? I bought a condo in a new development. It was not disclosed that 11 of 85 units were set aside for low income families. Apparently they do not contribute to HOA's but are subject to them. That means that the regular patrons pay for them. Is there a tax break for this?

Answer this question

Liked this question? Tell your friends about it

Facebook Windows Live Yahoo Twitter Digg Google del.icio.us Reddit

Link

Embed

Copy and paste the text above to share this Q&A

2 Answers

Order by: Oldest to Newest; Newest to Oldest; Votes

Tax Fairy Answered:

Homeowner's association dues are not deductible for a private residence. They are deductible if the unit is rented out for income and would be deducted on Schedule E. You may want to check with the association to see if there is a payment in lieu of the dues for the low income units. There are several ways this might be structured - the mgt company may be receiving grant money to cover the expenses, or may have received lower cost financing for the project, etc. Don't assume you are paying more to cover their expenses. I would think the non-disclosure could be a problem, however and you might have a basis for suit based on that.

Posted 2 years ago

Add a comment

Helpful? (0)

Report

gary999 Answered:

Russ, I agree with "Fairy's" comments and would add that the amount you paid is the amount deductible, regardless of whether or not part of that is due to picking up someone else's share. I also own rental property in an HOA and due to the number of foreclosures, each assessment is higher than it would be without the 10% which is uncollectable. I feel your pain.