Question 1

How Should HOA Fees Be Recorded?

Salif · Accepted Answer

Record HOA fees as an "Operating Expense" on your income statement. Since the IRS considers these ordinary and necessary for rental businesses, they are fully deductible. However, if an HOA imposes a special assessment for a capital improvement, you must add that cost to the property's basis and depreciate it.

Question 2

How Should HOA Fees Be Recorded?

Salif · Accepted Answer

Record HOA fees as an "Operating Expense" on your income statement. Since the IRS considers these ordinary and necessary for rental businesses, they are fully deductible. However, if an HOA imposes a special assessment for a capital improvement, you must add that cost to the property's basis and depreciate it.

Question 3

How Should HOA Fees Be Recorded?

Salif · Accepted Answer

Record HOA fees as an "Operating Expense" on your income statement. Since the IRS considers these ordinary and necessary for rental businesses, they are fully deductible. However, if an HOA imposes a special assessment for a capital improvement, you must add that cost to the property's basis and depreciate it.

Question 4

How Should HOA Fees Be Recorded?

Salif · Accepted Answer

Record HOA fees as an "Operating Expense" on your income statement. Since the IRS considers these ordinary and necessary for rental businesses, they are fully deductible. However, if an HOA imposes a special assessment for a capital improvement, you must add that cost to the property's basis and depreciate it.