Buying a house or a condominium that is in a large development, a homeowner’s association may take care of the maintenance of common areas as well as street cleaning and other related entities in the development. These services are paid for through a monthly, quarterly or annual fee passed down to the homeowner. Whether the HOA fee is tax-deductible or not depends on how you utilize the property.
Year-round residency in your property means HOA fees are not deductible. There are many costs with homeownership that are tax-deductible such as your mortgage interest and property taxes, however, the IRS will not permit you to deduct HOA fees, they are considered a charge by a private individual.
However, if the home is a rental property, HOA fees do become deductible. In cases like these, the IRS deems HOA fees to be a deductible cost of maintaining the rental property. All you have to do is report the fees on Schedule E on your tax return.
With a second home or vacation property that you use personally but also rent out, things become a little tricky. You can still use HOA fees as a deduction, but exclusively for the period, it is used as a rental. For instance, if you live in the house from December through March and use it as a rental property the rest of the year, you would be able to deduct two-thirds of your HOA fees (Since it is used as a rental eight months out of 12).
When trying to figure out if your Santa Clarita HOA community fees are tax-deductible, it is of great importance that you contact national Property Management with your local Santa Clarita HOA questions. We can help guide you through all the important information concerning HOA fees, rental properties and what they mean for you and your tax deductions. At National Property Management Group, we provide innovative property management solutions that outshine our competitors. We take pride in our work and complete each task with a smile on our face. There is no property too large or too small that we cannot service. We have established long-lasting relationships because we truly care and are attentive to the needs of all our clients. Call or visit our website with any questions or concerns you may have in regards to sorting through HOA rules and regulations.
National Property Management Group has extensive experience managing HOAs. Our professional staff is knowledgeable about HOA management in Southern California, serving Los Angeles, Santa Clarita, Valencia, and the surrounding areas. We can manage your HOA properties for you so you have less to stress about. We provide innovative property management solutions that outshine our competitors. There is no property too large or too small that we cannot service.
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355
(661) 295-5966
www.npmgonline.com