quick tax question on HOA dues

5 Replies

quick tax question for you guys.  I'm trying to get organized for tax season.  

Are Annual HOA dues deductible in the year they are paid or the year they cover?

example:  I just paid the 2016 hoa dues on the property on Dec 15, 2015.  Do I deduct that in 2015 or 2016.  

thanks!

@Matt Motil

I knew that question was coming.  Ive been using the actual(cash) method.  Is it fare to say when you are using that method you use that for ALL expenses and income?  For some reason I thought there where exceptions to some things.  I'm probably just confusing myself and making it more complicated that need be.  

thanks

yep, when you choose a method it's like getting married to it... except you can divorce your wife if you decide it was the wrong move. 

You're probably making it harder than it needs to be. I'd recommend you talk with @Brandon Hall . He handles all my accounting for my businesses and he's awesome. Highly recommend him. 

Thanks Matt.  I agree, Brandon has answered a few of my questions here and I have learned a lot from him.  I used a new local person last year and I was not too impressed because she messed up some of my non real estate stuff.  She did come recommended from another local real estate investor and got that part right though. I'm on the fence as far as switching goes....

Originally posted by @Mike Landry :

quick tax question for you guys.  I'm trying to get organized for tax season.  

Are Annual HOA dues deductible in the year they are paid or the year they cover?

example:  I just paid the 2016 hoa dues on the property on Dec 15, 2015.  Do I deduct that in 2015 or 2016.  

thanks!

 Typically you will deduct them in the current year paid as a cash basis taxpayer.  That said IF there are special assessments you may be required to add them to basis or depreciate them accordingly.