This debate has important policy consequences: proponents of exogenous causes of crises such as neoclassicals largely argue for minimal government policy or regulation ( laissez faire ), as absent these external shocks, the market functions, while proponents of endogenous causes of crises such as Keynesians largely argue for larger government policy and regulation, as absent regulation, the market will move from crisis to crisis. This division is not absolute – some classicals (including Say) argued for government policy to mitigate the damage of economic cycles, despite believing in external causes, while Austrian School economists argue against government involvement as only worsening crises, despite believing in internal causes.
Since these types of dues assessments are usually periodic, they can be used to offset the income from the rental property. Many of these associations perform services use as property maintenance, administration services, etc. It is important to note that these services along with others related to them can only be deducted if they are not personally used. Also note that some services which are offered by these HOA’s should not be duplicated in other areas such as landscaping and hired help. Using an HOA can be a benefit since most of the services needed to maintain and run your property can be managed by them as a bundled service assessment fee.
For more information, please review IRS Publication 527 for current regulations. Also, included please review the worksheet which will assist in the allocation between business and personal use time.