HOA won't provide receipt for dues payment

Dec 02, 2020 Last reply: 5 years ago 10 Replies

I own 2 rental properties in a particular community. Like most home- owners associations, they have retained a management company to handle the day-to-day operations of the association. They recently switched management companies, and the new company absolutely refuses to provide any sort of receipt or statement showing dues payments.



Am I still able to deduct these dues payments, with only canceled checks as documentation? (Annual dues for each property are around $2400.)


Of course you can.

If you get audited they might ask for documentation of some sort, and you might have to show them the letters/emails where they refuse to provide a receipt.

But it's a legitimate expense, with a countervailing income stream, and I can't imagine you'd have an actual issue.

If you have cancelled checks along with a copy of the lease agreement or other communication showing the amount of the HOA fee, that should be sufficient.

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I haven't tried postal mail yet, but they won't communicate by email.

Would a call recording work? (We are in a one-party state.)

That's the problem. I can't get anything from them showing the annual dues amount. They claim that they sent me coupons for monthly payments, but I never received them, and they say that they can't re-send them.

Well then how do you know how much to pay? When I was in a similar position, the HOA would send out an annual notice to all owners showing the amount of the dues (which usually went up once a year) and that became my proof of what was owed. There has to be SOME communication somewhere that shows the amount of the dues, since you obviously have some way of knowing how much to pay. If you're saying the amount stays the same from year to year, then whatever is the initial communication that showed the dues amount is what I would use.

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  1. Look at the HOA documents. Bylaws, financials, website for owners, etc.
  2. Ask another homeowner for a copy of one of their monthly coupons/stubs/whatever.
  3. Get get the coupon book for the following year, and save a copy for your tax records for the previous year.
  4. be delinquent on one payment and get their dun notice (risks a late fee, though).
  5. Take it up with the HOA board of directors. Others may be having this same or other difficulties with the management company, and their boss is the HOA board of directors.

HOA is required by the state law to publish their financial statement and actually send a proforma financial statements copy to each member annually. That, together with the copy of the bylaws, another publicly-available document, establishes the amount of your dues. Have you contacted their board president with your concerns?

Maria U. Ku, CPA Oakland, CA

They told me verbally over the phone, but refused to provide the same information in an email, letter, or statement.

  1. Wait for a call from one of my tenants ... Hey, I got this envelope for you from the homeowners association. It turns out that they sent their stupid coupon books (who would want to go through this every month?!) to the rental properties instead of to the owners. So in addition to being sleazy, they're idiots.

#5 is the real answer going forward, but ... ugh!

I'd tell them that they're not getting a penny out of me without some sort of written invoice. If they take you to court, you'll win. You will still have to pay the money you owe, but not any penalties.

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