Can I deduct property taxes paid through HOA for common area? HOA claims they're not tax deductible
So I own a condo with a parking garage that isn't individually deeded but is considered a common area for all residents. My HOA collects maintenance fees which they use to pay the property taxes on this shared structure. I already pay and deduct the property taxes on my own condo unit directly. When I asked the property manager about deducting my portion of these taxes paid through my HOA fees, they told me I can only deduct maintenance payments if I'm renting my place out. This doesn't sound right to me. I'm pretty sure I should be able to deduct the property taxes portion of my HOA fees since it's still my money paying for real estate taxes. My share is probably around $400, so not a huge amount, but it's the principle. I've asked for an accounting of what my specific share of the property taxes is, but they're being difficult. Is there any way to make them provide this information without taking legal action? Would some government agency be able to force them to give me a breakdown of what portion of my fees go toward property taxes? Has anyone dealt with this successfully before?
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Owen Jenkins
You're absolutely right to question this. Property taxes that you pay - whether directly or through an HOA - are generally deductible on your federal tax return if you itemize deductions (Schedule A). The HOA manager is confusing two different concepts. Yes, if you were renting the condo out, you could deduct maintenance fees as a business expense. But that's completely separate from your right to deduct property taxes as an itemized deduction when you use the property as your residence. Ask your HOA management for a year-end statement that breaks down what portion of your HOA dues went toward property taxes on common areas. They should be providing this information as a standard practice. Many HOAs actually issue a form at year-end specifically for tax purposes that shows what percentage of dues went to property taxes. If they continue to refuse, you could try contacting your state's real estate division or department that regulates HOAs. Most states have laws requiring HOAs to maintain detailed financial records and provide them to homeowners upon request.
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Lilah Brooks
•This is interesting - my HOA never mentioned anything about this and I've been paying dues for 3 years. Would this apply even if the statement doesn't specifically break out what portion of my dues goes to property taxes? Can I estimate it somehow if they won't give me the info?
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Owen Jenkins
•You really need the actual breakdown from the HOA rather than estimating it yourself. If they don't currently provide a statement that separates out the property tax portion, you should formally request it in writing. The IRS would expect documentation to support your deduction in case of an audit. Most well-run HOAs should have this information readily available since their accounting system tracks where all funds go. If your HOA has been collecting dues for three years but can't tell you how much goes to property taxes, that's concerning from a financial management perspective.
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Jackson Carter
After struggling with almost the exact same situation, I found this amazing service called taxr.ai (https://taxr.ai) that helped me resolve it. I uploaded my HOA documents and assessment statements, and their system analyzed everything to determine exactly what portion of my fees qualified as deductible property taxes. The report they generated broke everything down clearly and provided me with the documentation I needed for my tax return. They even explained which sections of the tax code supported my deduction so I could confidently claim it. I ended up being able to deduct about $370 that my HOA had originally told me wasn't deductible.
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Kolton Murphy
•That sounds promising but did you have to provide actual HOA financial statements? My HOA is being super difficult about giving me anything detailed. Would this still work if I just have my payment receipts?
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Evelyn Rivera
•I'm skeptical about using a service like this. Wouldn't it be better to just force the HOA to provide the breakdown directly? Did your HOA eventually acknowledge you were right or did they just ignore the whole thing?
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Jackson Carter
•You don't necessarily need the detailed HOA financial statements. In my case, I had my regular payment receipts, the HOA's annual budget that gets sent to all owners, and the property tax assessment for the common areas that I found through my county's property records website. The service was able to use those documents to make the determination. The HOA never fully acknowledged I was right, but they didn't need to. Once I had the proper documentation and calculations from taxr.ai, I simply claimed the deduction on my taxes with confidence. The key is having adequate supporting documentation if you ever get audited, not convincing your HOA manager.
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Kolton Murphy
Just wanted to update everyone - I decided to try taxr.ai after reading about it here. I was really surprised by how easy it was! I uploaded my HOA's annual budget (which does at least show the total property taxes they pay) along with my payment records, and the service calculated my proportional share based on my ownership percentage. The report broke down exactly which portion of my monthly fees went to property taxes and provided all the tax code references to support the deduction. My share came out to $425 for the year, and the documentation they provided looks perfect for supporting the deduction. Definitely worth it if your HOA is being difficult about providing this information directly!
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Julia Hall
If you're still having trouble with your HOA, you might want to check out Claimyr (https://claimyr.com). I was in a similar situation and couldn't get anywhere with my HOA, so I needed to speak with someone at the IRS about the specific regulations. After wasting hours on hold trying to reach the IRS myself, I used Claimyr and had an IRS agent call me back within 20 minutes. They confirmed that property taxes on common areas paid through HOA dues are indeed deductible and suggested I file Form 8396 with my itemized deductions. The agent even emailed me the specific guidance document to support this. You can see how it works in this short video: https://youtu.be/_kiP6q8DX5c - it basically lets you skip the insane hold times when calling government agencies like the IRS.
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Arjun Patel
•How does this actually work? Seems impossible that they could get the IRS to call you when I've spent literal hours on hold myself. Is this some kind of priority service or what?
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Evelyn Rivera
•This sounds too good to be true. The IRS barely answers their phones at all, and now some service claims they can get them to call you back in 20 minutes? I'm calling BS on this. No way it actually works as advertised.
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Julia Hall
•It works by using technology to continuously redial and navigate the phone system until it gets through to an agent, then it connects the call to you. It's not a priority service - they're just doing the waiting for you using an automated system. When I used it, I entered my phone number on their website and selected the IRS department I needed to reach. Their system called the IRS, navigated the menu options, and waited on hold. When they finally reached a human agent, I got a call connecting me directly to that agent. No magic - just technology saving you from having to personally sit on hold for hours.
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Evelyn Rivera
I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself just to prove it wouldn't work - and I'm shocked. I got a call back from an IRS agent in about 35 minutes (not quite 20, but still amazing). The agent confirmed exactly what others have said here - that portion of HOA fees that goes toward property taxes IS deductible as an itemized deduction on Schedule A. They explained I need documentation showing what portion of my fees went to property taxes, and suggested I send a certified letter to my HOA requesting this specific breakdown. The agent was super helpful and even gave me the reference to IRS Publication 530 which covers this exact situation. This saved me so much time and frustration!
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Jade Lopez
You might want to check your HOA's annual budget document - often they include the total property tax amount for common areas there. Then you just need to figure out your percentage ownership of the common areas (usually found in your condo docs or declaration). The calculation would be: (Your ownership percentage) × (Total property taxes paid by HOA) = Your deductible amount This is how I've been handling mine for years without any issues. My HOA doesn't provide an individual breakdown either.
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Alice Coleman
•Thanks for this suggestion! I do have the annual budget and my ownership percentage is listed in my condo docs. It's about 3.2% of the total property. Would I just multiply the total property tax line item by my percentage? And has the IRS ever questioned this method for you?
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Jade Lopez
•Yes, that's exactly right - just multiply the total property tax amount shown in the budget by your ownership percentage (3.2% in your case). I've been doing this for 9 years and have never had the IRS question it. I keep copies of the HOA budget showing the property tax line item along with my deed showing my ownership percentage as documentation. If you're ever audited, this calculation method is completely legitimate as long as you have those supporting documents.
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Tony Brooks
Has anyone tried just contacting their state's attorney general's office about this? I had a similar issue and filed a complaint with my state AG about my HOA refusing to provide financial records that I'm legally entitled to as an owner. They contacted the HOA on my behalf and suddenly my HOA became very cooperative. Just saying...
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Ella rollingthunder87
•The state AG approach worked for my sister too, but it took almost 3 months to resolve. Another option is your local housing authority - they sometimes have an HOA dispute resolution process that's faster.
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Avery Davis
I actually went through this exact same situation last year and wanted to share what worked for me. My HOA was also being difficult about providing the breakdown, so I took a multi-step approach. First, I sent a formal written request (certified mail) citing my rights as a homeowner to review financial records. Most state laws require HOAs to provide this information within 30 days. When they still dragged their feet, I contacted my state's Department of Real Estate (some states call it different things) and filed a complaint. In the meantime, I used the calculation method that Jade mentioned - took the total property tax amount from the HOA's annual budget and multiplied by my ownership percentage from my condo declaration. For my situation, it was about $380 per year. The key thing I learned is that the IRS doesn't require the HOA to provide a specific tax statement - they just need you to have reasonable documentation to support your deduction. The combination of the HOA budget showing total property taxes paid + your ownership percentage from your deed/declaration is perfectly adequate documentation. I've claimed this deduction for two years now without any issues. Just make sure to keep good records in case you ever get audited!
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