PUD Taxes

Similar to homeowners associations, planned unit developments (PUDs) are not exempt from paying income taxes and filing tax returns. Get the help you need by hiring the tax professionals at Clark Simson Miller.

PUDs and Taxes: Are They Required?

Although they go by a different name, planned unit developments work similarly to homeowners associations. They are organized as nonprofit corporations in most states, though that doesn’t mean they are tax-exempt. On the contrary, PUDs are required by federal law to file tax returns even if they don’t owe any taxes.

Federal PUD Taxes

Planned unit developments can use one of two tax forms to file their federal returns: Form 1120 and Form 1120-H.

  • Form 1120. Corporations use Form 1120 to file their federal tax returns. In the same way, planned unit developments can also use it, though it demands more work due to the detailed nature of the form. By filing this form, all of a PUD’s net income is taxable but at a lower tax rate for the first $50,000 of their net income.
  • Form 1120-H. The IRS released Form 1120-H specifically for the use of homeowners associations (including PUDs). This form is easier to complete since it doesn’t have as many prerequisites as Form 1120. But, PUDs must meet certain requirements to qualify for this form.

State PUD Taxes

When it comes to state income taxes, the requirements can change drastically from state to state. Each state has its own tax code and forms, though a handful of states don’t impose income taxes at all. Due to this, PUDs are advised to seek help from a tax professional when filing their state returns.

Why Get Professional PUD Tax Help

Planned unit developments are required to file tax returns, but they often struggle because of how complicated the process can be. Thankfully, Clark Simson Miller offers federal and state PUD tax preparation services designed to make tax season easier.

Clark Simson Miller can help you with the following:

  • Evaluate qualifications. Interpreting the tax code can be difficult, but CSM professionals can help. We can determine whether your PUD is qualified to file Form 1120-H, how much of your income is taxable, and more.
  • Fill out and file required forms. What forms do you need to file? Can you ask for an extension of time? How do you fill out the schedules? With our help, you won’t have to worry about these questions anymore.
  • File all forms on time. Filing past the due date can result in some hefty consequences for your PUD. CSM can help you file your returns on time every time.
  • Accuracy. Inaccurate forms can lead to expensive penalties and even an IRS audit, which is certainly not ideal. Our tax professionals can fill out your forms and compute your taxes with utmost accuracy.
  • Save money on taxes. CSM professionals can give you helpful tips and tricks on how you can save money on taxes throughout the year.
  • Review previous tax returns. If you’re worried about miscalculations on your past returns, CSM can help you. We can review your past returns, spot any missed deductions, and amend them as needed.
  • Ease your anxiety and stress. Tired of endless hours, sleepless nights, and headaches? With CSM, you can look forward to a stress-free tax season.

A Capable and Reliable Partner

Clark Simson Miller specializes in accounting and PUD taxes, among other services. We have years of experience providing our clients with the best services and unmatched results. Plus, our team of tax professionals are experts in their field and always stay up-to-date on all the tax code changes.

Call us today at 865.315.7505 to learn more or contact us online to request a proposal.

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