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Subject: HOA NON PROFIT
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Author Messages
GlennE
(Florida)

Posts:30


02/22/2008 5:27 AM  
I WAS ELECTED PRESIDENT OF OUR HOA LAST MONTH AND A QUESTION CAME UP ABOUT OUR HOA BEING FOR PROFIT OR NOT FOR PROFIT. I COULD NOT FIND ANYTHING IN WRITING SO I WENT TO OUR ACCOUNTANT AND WAS INFORMED WE WERE NON PROFIT BY THE STATE BUT PROFIT FOR THE FEDERAL, IS THIS POSSIBLE?
GeraldT4


Posts:1022


02/22/2008 5:54 AM  
GlennE - Curious, you were elected president, or elected to serve on the board and then the board members amongst themselves decided who the officers will be. Typically the later is the way it's supposed to occur.

I'm not an accounting expert, however your either for profit, or non profit. Most, if not all HOA's are non profit. How can you declare to the state you are non profit but declare to the Fed that you are profit? Doesn't make sense.
DonnaS
(Tennessee)

Posts:5671


02/22/2008 6:53 AM  

Glenn,

Your HOA is a not for profit corp in the State of Florida. Go to GOOGLE and type in "Florida not for profit corps" You will find your listing in there and also go to your "clerk of Circuit Courts website and type in the name of your developement. It will be there also.

Your corporation will pay Federal taxes on interest earned for association investments.

Roger!!! Please help here. Thanks, Donna
GlennE
(Florida)

Posts:30


02/22/2008 8:26 AM  
OK Roger, thank you very much and I received much the same answer at a board meeting we had this morning. This is a great web site and I'm sure glad I found it. Glenn Eversen
SusanW1
(Michigan)

Posts:5202


02/22/2008 8:35 AM  
Your Secretary should have all these important papers in a binder.

Keep in safe place:


*IRS Determination Letter
*Articles of Incorporation
*Annual Reports filed to the state for the past years (if you state requires)
*CCR
*Filed Tax reports
*Bylaws
*Rules and Regulations or Standing rules
**Minutes of the Board meetings, including financial reports
**Minutes of the Membership Annual Meetings, with end of year audited Financial Report


* copies - keep orginals in safe deposit box

** copies of the minutes from at least the 3 past years.

GlennE
(Florida)

Posts:30


02/22/2008 8:50 AM  
Thanks for your reply GeraldT4. It is in our by-laws that the Board at its first meeting after the annual meeting shall elect a President, Vice-President,Secretary, Treasurer and standing committees. About your second comment,
I had some of the board members researching this query and it was found that we are non-profit by the state but
we do pay federal taxes so we are NOT non-profit for Federal. Thanks again for the reply, this is just a great web site.

Glenn Eversen
DonnaS
(Tennessee)

Posts:5671


02/22/2008 8:58 AM  

Glen,

I think that you should relook in your Articles Of Inc. document. The exact wording should be in there as to what your association is.

NOT FOR PROFIT and NON PROFIT are totally different. I still bet that you are under NOT FOR PROFIT in Florida. This is very important because it tells you what tax form that you will need to file. Not For Profits are not taxed by the Federal Government except on earned interest monies so there is a huge difference.
GlennE
(Florida)

Posts:30


02/22/2008 9:44 AM  
Thanks for your input DonnaS and you are right that we are non-profit for the state. I have gotten several replies to my question and am very happy I found this web site. Thanks again.

Glenn Eversen
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