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Property Tax And Hoa

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Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
If the HOA dues are included in the property tax how do you fill out page 1? Interesting concept because now the "HOA" dues are tax deductible.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
HOA dues are not considered property taxes and are not deductible on your federal income tax as an itemized deduction.(I'm a non-attorney spokesperson and do not give tax advice).
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Separate them - Also are you sure those are the property taxes and not special assessments ?
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
i've never seen the HOA dues included with taxes, but that doesn't mean it can't happen. just last month i did an order on a condo where the HOA fees included the annual taxes and the HOA was responsible for paying them on behalf of the owner. very strange and had never seen that before.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
If the HOA dues are included in the property tax how do you fill out page 1? Interesting concept because now the "HOA" dues are tax deductible.
How can that work? The payment is made to some municipality which then remits money back to the HOA to pay the HOA expenses? Sounds like a waste of our tax dollars.
 

Vermonter

Senior Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Vermont
i've never seen the HOA dues included with taxes, but that doesn't mean it can't happen. just last month i did an order on a condo where the HOA fees included the annual taxes and the HOA was responsible for paying them on behalf of the owner. very strange and had never seen that before.

Some of the resort condos around here started doing that after the 08 crisis. Absentee and timeshare owners are notorious for tax delinquency so the association handles it instead. Property manager also said it's been a major PITA.
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
Finally found a contact for the HOA. Yes, the HOA is included in the property tax of the property. The HOA dues are calculated at $19 per $100,000 of the assessed property value. Seems like a sweet deal for the HOA with not having the collect monthly dues. Also, great in an up market, not in a down market. HOA delinquency is probably zero or you could lose you property in a tax sale. If it is tax deductible you'll have to ask your CPA.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
The HOA dues are calculated at $19 per $100,000 of the assessed property value.

wow, another condo-related item i have never encountered. that's two on this order alone! every condo i have ever appraised, owned or sat on the board of all calculated HOA by GLA and/or level. i've never seen one based on the assessed value. interesting. i wonder how things would go if (when?) there was another crash and values plummeted. i have no idea of the pricing of these units but if they went from say $100k down to $50k would the HOA survive when the fees they are collecting would be cut in half? after serving on many boards in my lifetime it's quite hard to budget for the unexpected costs, even when you factor in the losses of those unit owners who don't pay. i can't imagine trying to pay for everything an association needs with half of the funds available.

i'm curious. here in ohio if i buy a property for less than the assessed value all i need to do is turn in a copy of the contract to the auditor and they will lover the value to what the contract states. do you have something similar?
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
How about the developer in control of the HOA for the next 40-years till the bonds for the development is paid back. Apparently there is a cap on how much the developer can rise the HOA dues.
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Once the $ is in the piggy bank of the tax assessor, the HOA can kiss it goodbye.
 
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