💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

KeithM (North Carolina)
Posts: 2
Posted:
I would like to hear from any HOA Director or Treasurer that is operating with or without a 501(c)4 Tax Exemption ? This is a costly process,especially for small HOA complexes that have no taxable income except possibly on small interest on emergency reserve CD accounts. Does your state require this ? IRS ? Advantages/Disadvantages ?
What have you experienced with or without this process ? I previously asked a similar question, but no one has addressed whether they have gone through this procedure or not. Is it a necessary function, or can you live without it ? I would appreciate any input. Thank you.
RogerB (Colorado)
Posts: 5,067
Posted:
Keith, HOAs are not tax exempt. You should be filing IRS form 1120-H and probably only need to pay taxes on 30% of interest income after a standard deduction of $100 and deduction of previous year state tax paid.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here