Writing off HOA fee ? Does it equal more cash flow?

[Kenneth Hawkins, Jr.]

Should the writing off of the HOA fee make a difference in deciding to close on a deal or not ? A Realator suggested that the writing off of the HOA fee will decrease my tax bill leaving more for cash flow. But that would only leave more money from my personal income right and not increase the cash flow ?

[Natalie Kolodij]

A realtor isn't actually qualified to give tax advice. 

I would discuss this with your CPA.

HOA fees are deductible on schedule E- but they're not going to result in a dollar/dollar savings in terms of cash flow.

If you're calculating monthly cash flow this is still a monthly outflow of cash either way. 

Come year end you do get to deduct this which may equate to a slightly lower outflow of cash during that one time (Tax) expense (or quarterly estimated payment expense). I would have your CPA run a sample for you so you can actually see the benefit.