As the IRS begins accepting 2024 tax returns on January 27, 2025, homeowners should be aware of the tax implications of HOA fees. Generally, HOA fees for primary residences are not deductible. However, homeowners using part of their property for business, including home offices or rental properties, may have some deductibility. To calculate deductible HOA fees for a home office, taxpayers can prorate based on the square footage used for work. Meeting IRS requirements is critical for these deductions.
The IRS accepts 2024 tax returns starting Jan. 27, 2025, with a filing deadline of April 15. Homeowners should carefully consider tax implications of HOA fees.
HOA fees are not deductible for primary residences; however, self-employed individuals using a home office may deduct a prorated portion of these fees.
To prorate HOA fees for deductibility, homeowners should calculate total HOA dues and scale by the ratio of home office square footage to total home size.
Tax attorney John Georvasilis states that some HOA fees may be deductible for properties used for business purposes, highlighting an important area for homeowners.
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