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| *The Commerce Journal>>>Renting & Real Estate |
Is rental property's HOA fee deductable? |
I owned my condo for about 2 and half years. Then I got a new job and moved to another city. I rented out my own condo 1500$/mon to cover my cost. In the meanwhile I paied 1195$/mon for the apartment that I live in at the new place. From turbo tax, it looks like both are deductable From your description, it appears that your move was permanent and you established a new domicile. Your apartment is your personal residence and any expenses associated with at are not deductible. On the other hand, all expenses associated with your rented condo are deductible because you have converted it to income property. You can deduct property taxes, insurance, utilities, interest on the mortgage (but not the principal), maintenance, homeowners association fees, repairs, and even the cost of your visiting the rented condo location for the purpose of conducting business about your income property, such as inspections, rental arrangements, hiring a rental agency, etc. I have never heard of rent being tax deductible and for my real estate exam learned it was not, at least not in California. Also as for as I know HOA fees are not tax deductible either. Only the INTEREST (not principle) paid on mortgages loans are as far as I know but I am not a tax advisor so I'll just say that's my opinion (I own 2 condos and many homes that I rent out and rent an apartment so similar to your situation). You are also not able to deduct more than the actual income you are bringing in. If your HOA, expenses and interest are higher than $1500 a month, you can only deduct $1500. Neither your new rents or any HOA fees at the new place are deductible against the income from your other unit. Any expenses incurred for your old place are deductible business expenses against the income you receive from rents. |
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