As with most things, though, there are exceptions. Some HOAs may be recognized by the IRS as a nonprofit if it has registered as such and been approved. This is a rare case, however, and is obtained only by filingForm 1024and using tax code section 501(c)(4). ...
IRS issued Revenue Ruling 70-604 which provides an administrative technique that allows an association to make an election to avoid taxation of that excess member income in a given tax year. There is considerable controversy over how to interpret this very brief two paragraph ruling and this in ...
Are HOA fees tax-deductible? IRS regulations can be complicated, but in general, HOA fees are not deductible if the property you own in the community is yourprimary residence. However, if you rent it out, your HOA dues may be deductible as a rental expense. HOA special assessments are not...
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… Why Do HOAs Need To File Form 1099 ...