Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I drew the short straw and got made the HOA treasurer. The HOA itself is tiny does not do much over the course of a year. (Just pay for some snow plowing, insurance and gardening.) The dues and the expenses just about match over the course of the year.

I know that it has to file a tax return of some flavor, but not much about it.

Any pointers to the IRS pubs that cover this? Going to a professional for the actual return is certainly a possibility, but I need to know some background.

Start with the instructions to Form 1120-H.

A HOA is generally an exempt organization under Code Section 501(c)(7).
It is taxed only on its investment income (interest, dividends, etc.) at a rate of 30%. This may or may not be cheaper than filing as a regular corporation (filing and 1120) and treating all your dues, assessments, etc., as business income, if you're about breaking even.

You have the option to do either. And you can change your election every year. The instructions spell this out on pages 1-2.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.