Are HOA Fees Tax Deductible on Rental Property?

✓ Yes, on rental property
HOA fees on rental property are 100% deductible as a rental expense. Report them on Schedule E. HOA fees on your personal home are NOT deductible under any circumstance. If you have a home office in an HOA community, you can deduct the business-use percentage of HOA fees as part of your home office expenses.

Rental property HOA fees

If you own a condo, townhouse, or home in an HOA community and rent it out, the HOA dues are a deductible rental expense. This includes:

Deduct them on Schedule E, Line 7 (Other) or as part of your management and operating expenses.

Primary residence HOA fees

HOA fees on your personal home are a personal expense and not deductible. Period. Even if the fees cover things like landscaping or insurance that might otherwise be deductible on a rental, they're personal when it's your home.

Home office exception

If you have a qualifying home office and pay HOA fees on your residence, you can deduct the business-use percentage of your HOA fees as part of the home office deduction (regular method only, not simplified). If your office is 10% of your home, deduct 10% of your HOA fees.

IRS Reference
See IRS Publication 527 (Residential Rental Property) for rental expense deductions. Home office: IRS Publication 587.

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