Monthly Assessments, A Tax Deduction?
Here is an interesting article from Community Association Institute (CAI). Granted this has not become law, but it is certainly interesting for anyone owning a condo.
CAI Supports Federal Legislation to Provide Homeowner Relief
Measure Would Give Millions a New Tax Deduction
U.S. Representatives Anna G. Eshoo (D-CA) and Mike Thompson (D-CA) introduced a measure that would allow homeowners in community associations who earn $115,000 or less in annual income to deduct up to $5,000 of their association fees and assessments from their federal tax liability.
Community Associations Institute (CAI) has expressed support for the bill. The federal legislation will benefit many of the more than 66 million Americans who live in homeowners associations, condominium communities, cooperatives and other planned communities.
The bill-Helping our middle-income Earners (HOME) Act-“recognizes that millions of middle class homeowners are struggling to keep up with rising household expenses like child care, college tuition, health care, mortgage and community assessments,” Eshoo said. “The Home Act can go a long way by providing relief from this tax burden on millions of middle class families.”
This bill recognizes the financial unfairness facing homeowners in community association, as they pay their fair share of local property taxes, along with their community assessments, and receive many municipal services from their community association; like street and sidewalk cleaning, trash removal, snow removal and more.
“CAI applauds Rep. Eshoo for her efforts to make homeownership more affordable and for recognizing the inequity of double-taxation faced by homeowners in America’s community associations,” said CAI Chief Executive Officer Thomas M. Skiba, CAE.
“We look forward to working with Reps. Eshoo and Thompson to ensure this legislation is a net gain for the more than 66 million Americans who live in community associations,” Skiba added.
While there hasn’t been a senate companion bill introduced, CAI expects Members of the House of Representatives in states with a large number of community associations like, Florida, California, Texas, Illinois, North Carolina, New York and Massachusetts to support the legislation and continue a dialogue that may lead to inclusion of the tax deduction in comprehensive tax reform legislation.
With almost 34, 000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship-ideals reflected in communities that are preferred places to call home. For more information visit www.caionline.org.
Article courtesy of: Dawn Bauman