Homeowners assn question - attorney's fees - considered exempt expenses?

[zeros]

I don't know if I worded the question correctly. Are attorney's fees considered direct expense and offsets exempt income? Hopefully I can get a quick answer. Thanks.

[ChEAr$]

I don't know if I worded the question correctly. Are attorney's fees considered direct expense and offsets exempt income? Hopefully I can get a quick answer. Thanks.

Not clear. Can you give an example?

[zeros]

Tree Trimming

Not clear. Can you give an example?

Tree trimming is a direct expense and is deductible against association dues income, for example. I was wondering if attorney's fees are a direct expense or is it deductible against other taxable income like interest earned?

[ChEAr$]

Tree trimming is a direct expense and is deductible against association dues income, for example. I was wondering if attorney's fees are a direct expense or is it deductible against other taxable income like interest earned?

I still have no idea what you're talking about. I always thought that homeowner association dues were not deductible atall.

[taxmandan]

HOA Attorney fees

If you are filing the 1120H and the lawyer fees were incurred in the course of accomplishing the Associations business, then I deduct them as a direct expense against exempt income. Only if it was incurred to recover taxable income would I take them against that income.

[zeros]

Taxmandan

If you are filing the 1120H and the lawyer fees were incurred in the course of accomplishing the Associations business, then I deduct them as a direct expense against exempt income. Only if it was incurred to recover taxable income would I take them against that income.

Thank you, that is the answer to my question.

[ChEAr$]

And now I understand the question.