Monthly assessments as a Tax deduction...

Started by FredO • 8 replies • 1865 views

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FredO (California)
Posts: 198

Posted:

Hi Folks,

Ok, so there are thousands of HOA, COA, POA's throughout the Country.
What do you think of asking our various elected Congress people and Senators to create a law that will allow us to write off our monthly assessments as a sort of property tax.

HOA's in general are basically little governments and with over (I think I read here on this forum, that there are something like 28 Million people across the USA living in HOA's) 28 Million folks we ought to have enough grass roots to get a law such as this enacted.

The Assessments are just like taxes as they go to pay for the HOA's infrastructure from road and grounds maintenance to setting up reserves for major repairs. (Building maint for condos and the rest...)

Just thinking with too much time on my hands today. These dues are de facto taxes in these de facto governments.

What do you folks think of this as an idea. I would like to write my dues off as additional taxes I pay every year. This would take some of the bite out of writing the check each month...

Any discussion on the idea? Any merit or pro/con's to it?

Sorry f this is a topic previously discussed.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By FredO on 09/19/2014 1:45 PM
What do you think of asking our various elected Congress people and Senators to create a law that will allow us to write off our monthly assessments as a sort of property tax.

Good luck with that one.

Actually, if you own a condominium or other property where you pay assessments to an association and you rent that property, you can deduct the assessments as an expense on Schedule E. Unfortunately, it is not a tax deduction for the folks who own a condominium or similar property and maintain it as their residence.

There once was a time when you could deduct the interest on an auto or other personal loan, as well as the interest on your credit card. Congress took away that deduction a long time ago. It's not very likely they're going to give up a source of income for Uncle Sam.

FredO (California)
Posts: 198

Posted:

Thanks bruce,

yeah, you're not going to see me holding my breath on this one anytime soon.
Just sort of wondering if we got organized across the Nation, they would have to at least open discussion on it...

Wish we still had the auto loan and credit card interest tax deductions. It was a sad day when they did away with those along with the income averaging...

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I would be great.

Never going to happen.....

RichardP13 (California)
Posts: 1,767

Posted:

As others have said, don't hold your breath. Matter of fact, I don't think mortgage interest deduction is around too much longer. I think that will do first as primary residences and investors will be phased out in five years.

GlenL (Ohio)
Posts: 5,491

Posted:

I think NJ is the only state with something similar to what you are proposing. We had a poster from NJ a few years back who explained if there was something your property taxes paid for (like trash pickup) if you didn't live in a HOA, then people who lived in a HOA and paid for it through their assessments, got a rebate on their property taxes.

Studies show that 5 out of 4 people have problems with fractions

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By GlenL on 09/19/2014 7:09 PM
I think NJ is the only state with something similar to what you are proposing. We had a poster from NJ a few years back who explained if there was something your property taxes paid for (like trash pickup) if you didn't live in a HOA, then people who lived in a HOA and paid for it through their assessments, got a rebate on their property taxes.

That makes sense Glen. It's the local government that is avoiding the cost, not the Fed.

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By FredO on 09/19/2014 1:45 PM
Hi Folks,

Ok, so there are thousands of HOA, COA, POA's throughout the Country.
What do you think of asking our various elected Congress people and Senators to create a law that will allow us to write off our monthly assessments as a sort of property tax.

Lets say that that happened.

I think it would be logical for the government to then amend or repeal the use of 1120-H which could require the Association to pay taxes on all of it's income. This would require your Association to raise assessments in order to pay the taxes on the money you lobbied to have as a tax write off on your personal taxes.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By TimB4 on 09/19/2014 10:03 PM
I think it would be logical for the government to then amend or repeal the use of 1120-H which could require the Association to pay taxes on all of it's income. This would require your Association to raise assessments in order to pay the taxes on the money you lobbied to have as a tax write off on your personal taxes.

Interesting.

Yes, that does sound like something they would do.

There are some economists who will say businesses don't pay taxes - you do. You pay the taxes through the increased costs for the goods and services you buy.

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