As the tax deadline approaches, homeowners should explore potential deductions for HOA fees. While HOA dues are usually not tax-deductible for primary residences, they may qualify as business expenses if the home serves as a workspace or is rented out. Additionally, special assessments could impact capital gains tax. Tax attorney John Georvasilis explains that for self-employed individuals, part of the HOA fees might be deductible if a dedicated home office is maintained. Ensuring knowledge of these regulations might yield significant savings on tax returns.
If you buy a property as your primary residence and are responsible for paying HOA fees on a monthly, quarterly, or yearly basis, those fees are not tax-deductible.
If you use part or all of the home for business purposes such as a rental or a home office, you may be able to deduct some or all of the HOA fees.
If you're self-employed and working from a dedicated home office, a portion of your HOA fees might be tax-deductible under the home office deduction.
Understanding these rules could make a meaningful difference in your return, especially for full-time remote workers or part-time landlords.
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