I believe the concept of a homeowner’s association is predominant in foreign countries, but in India, we do have an Apartment Owner’s Association so let me talk about it here. This association plays a vital role in the maintenance of the apartments. They also ensure the welfare of its members. These associations may or may not be registered, but to avoid any legal action, it is better to get them registered. Such associations collect maintenance charges from their members but I was not sure about- are homeowners association fees tax deductible or not. I researched a bit about it and gathered some information, which I will love to share with you all here.
Can homeowners association dues be deducted on taxes?
Apartment Owner’s Association run on fees obtained from the members for
Maintenance
Mutual help and support
Recreation
Updation and more
These charges are all exempt on mutuality basis, as no one can make money out of himself. This norm of mutuality is derived from the concept that the income earned by a person from external sources is taxable. But income derived from oneself cannot be treated as income, so no tax will be levied on it.
Which incomes are not subject to taxation?There are some incomes upon which no tax is levied
Interest earned from a co-operative bank
Income earned from Apartment’s Owners Association
Rentals received from members out of common facilities like the hall, open terrace and more
Donations made by the apartment owners association for medical relief, the national sports fund, and more
This is my answer to the question- are homeowners association fees tax deductible or not.
Read More:What is apartment owners association?
Difference between apartment and society
How house rent is deducted from income tax?
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Are Homeowners Association Fees Tax Deductible ?
Shriya
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2023-04-21T09:54:16+00:00 2023-04-24T10:07:54+00:00Comment
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