Not every board member knows there may be a tax exemption for HOA communities. After all, not everyone is aware of HOA-related laws and legal processes. However, homeowners associations should remember this as it may impact their community’s finances. Tax Exemption for HOA Communities Many homeowners only care about whether or not HOA fees…
For most organizations, tax season is one of the most stressful times of the year. Homeowners associations are no exception. Here is what you need to know about HOA tax returns. Do You Have to File HOA Tax Returns? Many homeowners associations operate with the incorrect assumption that they don’t have to pay taxes or…
When it comes to federal taxes, many homeowners associations find themselves in a bind. While HOAs are required to pay taxes and file tax returns, they fall into a specific category under the Internal Revenue Service — IRS 528. Understanding HOA as Non-profit Corporations In many states, homeowners associations are structured and formed as…
Tax season is always hectic and confusing, especially if you have no experience with it. Like many other organizations, homeowners associations also need to file Form 1099-MISC, even if you are classified as a non-profit. Learn more about this important IRS form below. What Is IRS Form 1099-MISC? Your homeowners association operates like a business…
Tax season is always a stressful time of the year. One of the questions HOA residents commonly ask is, “Are HOA fees tax deductible?” The answer, though, is not as simple. Are HOA Fees Tax Deductible? A homeowners association runs a community by imposing certain rules, preserving its aesthetics, and maintaining various aspects of…
HOA audit time is always a busy time for associations. At the end of the year, HOA board members have to start considering whether they need to get a financial audit started. Usually, it is a toss-up between getting a financial review vs audit for HOA books. For some HOAs, there is a need to…
Having the finances well-organized in your community association is essential to maintain a great reputation amongst current and future residents. Many HOAs are not responsible with their finances, which causes them to not operate at their maximum potential. If you want to avoid money problems down the road, consider these financial tips for an HOA.…
The management of a homeowners association involves several parts, the most confusing of which is financial management. HOA boards with no experience in preparing financial statements and filing taxes often look to professionals for help. Here is why a CPA for an HOA is essential and how to find the right one. In this…
Tax season is upon us, and if you are new to filing taxes with your HOA, you may have many questions about which forms need to be filed, whether you are tax exempt, and what to do if your HOA has not filed in a couple of years. In this post, we will answer some…