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Will a New Bill Make Condo Fees Tax Deductible?

by Nena Perry-Brown

Will a New Bill Make Condo Fees Tax Deductible?: Figure 1

In early March, Representative Anna Eshoo (D-CA) introduced a bipartisan bill in the House of Representatives meant to amend the Internal Revenue Code to allow a tax deduction for homeowners association (HOA) payments.

If enacted, individual taxpayers who earn less than $100,000 annually will be able to deduct the total annual value of HOA payments, up to a maximum of $5,000. The modified gross income limit would be $150,000 for joint filers.

The new law only applies to obligatory regular payments made on a primary residence. The bill would require condo/co-op boards to make annual tax reports of the dues they receive from each member and provide members with those statements.

The House Committee on Ways and Means is currently considering H.R. 4696, known as the HOME (Helping Our Middle-Income Earners) Act.

See other articles related to: taxes, tax assessments, irs, homeowner's association, hoa

This article originally published at https://dc.urbanturf.com/articles/blog/homeowners_may_see_a_tax_break_on_hoa_fees/11220

1 Comment

  1. Paul S said at 7:46 pm on Thursday May 12, 2016:
    Terrible idea. We already have too many deductions. Why should someone in a condo be favored over a renter or over someone who owns a fee simple home? I'm completely against this. But if they do move forward with such a terrible bill they need to have the HOA determine how much of the condo fee goes towards amenities and utilities versus upkeep of the building. The portion of the monthly fee that goes towards non-essential amenities and, any utilities that cover the units rather than the common areas, should not be deductible. The condo I moved out of last year paid the water, gas and FIOS internet for residents. Why should a condo owner have those expenses deductible but not a townhouse or SFH owner...

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