HOA Documentation and Tax Issues

Started by VirginiaM • 1 replies • 2456 views

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VirginiaM (New York)
Posts: 23

Posted:

What are the documents required for a HOA in NY State? It is an Assoc. that has 2 properties deeded to 140 families. There is no management company involved.

Members have access to charter documents (dated 1949)and bylaws but nothing else. Is there anything else required for HOAs?

The Association does not file any tax returns...

The BOD said they do not have to file for taxes because 1) they are non-profit and 2) because the dues apx $20K per year are used for property maintenance. They acknowledge a surplus of anywhere from $6-$10K per year. A small amount funds may be used towards parties & social events. Does that matter?

Also, what is the norm for audit's? I don't think one has been done for over 10 years.

JohnA (Texas)
Posts: 6

Posted:

I have been told everybody has to file taxes. United Way, salvation Army and Red Cross are all non profit organizations - yet they file income tax returns. Being non profit does not exempt anyone from filing a return. It just means you may not have to pay taxes on income if you do everything correctly per the IRS. The Govt still wants to know how much money you are taking in etc.. Check out the IRS website. We had to go back and file returns for the last 10 years. Also watch the 1099's. We employed some laborers to do work that were not incorporated so we have to file 1099's with the IRS to show how much we paid them (so they report it as income). Get a good CPA, They will instruct you on what to do.

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