CAI supports legislation that will provide favorable treatment of association assessments under the Internal Revenue Code. The Helping Our Middle-Income Earners (HOME) Act, H. R. 4696, allows certain community association homeowners to deduct a portion of association assessments on federal income tax returns. The legislation will allow an income tax deduction of up to $5,000.00 for qualified association assessments.
If enacted, the proposed deduction will be available for single filers with an adjusted gross income of $100,000 or less. Additionally, the deduction will be available for joint filers with an adjusted gross income of $150,000 or less, and on a sliding scale for taxpayers above the established adjusted gross income limits. The deduction will be available to homeowners in all forms of community associations (planned community, condominium association, housing cooperative) and available only for a primary residence. This bill recognizes the financial inequity facing homeowners in a community association as they pay property taxes and community assessments and receive many municipal services from their community association not the municipality.