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HOA charges in closing costs of a rental property purchase

Forum|Forum|7 years ago
June 1, 2019
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I purchased a property in 2018 for rental purpose. There were 2 kinds of charges related to the Homeowner's Association (HOA) in the closing costs:

1. HOA Transfer Fee

2. HOA assessments for the following 3 months

I am including item #1 as part of my Adjusted Cost Basis for this property, and item #2 as an expense item to be deducted from income of this property. Is this correct?

Thank you!

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Best answer by Anita01

Yes, as long as the rental was actually available for rent, or was rented at the time,and you're using cash accounting, you can expense the HOA monthly fees.

A

Anita01Answer

Employee

Yes, as long as the rental was actually available for rent, or was rented at the time,and you're using cash accounting, you can expense the HOA monthly fees.