Categories: News

Will Assessments Become Tax Deductible?

On March 3, 2016, two members of the House of Representatives from California introduced H.R. 4696 which would amend the tax code to allow certain homeowners to deduct homeowner association assessments.  The act, called the “Helping Our Middle Income Earners Act” or “HOME Act” would allow homeowners earning $115,000 or less to deduct up to $5000 in regular assessments related to their primary residence from their federal taxes.  The bill has been assigned to the House Ways and Means Committee.

CAI has expressed support for the bill as it addresses an unfairness to homeowners who pay local property taxes, but receive many traditional municipal services from the homeowners association to which they pay assessments.  CAI estimates that there are more than 66 million people living in homeowners association in this country and that this act would be a significant benefit to many.

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Published by
Lauren C. Holmes

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