Unit owner would rather pay property taxes than HOA fees

Posted on Sat, Mar 28, 2015 @ 08:20 AM

Tags: Taxes, Fees, Foreclosures, Delinquencies & Collections

We have two delinquent units in our association of 22 units. I contacted the municipality to find that the taxes have been paid by a "servicing company".  I contacted the company only to be told that they cannot provide/confirm/deny who is making the tax payments. The association is not receiving the HOA fees on these units.  How is it that whoever is paying the taxes does not have to pay the HOA fees, and can pretty much stay hidden from anyone inquiring about them? The board needs those fees even if the owner of record is not living there or renting it out.

Can owner show the HOA tax returns to his accountant?

Posted on Tue, Mar 24, 2015 @ 05:20 AM

Tags: Florida, Budgets & Finance, Taxes

I am a member of a Florida HOA.  The official HOA financial records include tax returns. I requested copies which were provided under a cover letter saying the returns are confidential and cannot be disclosed to a third party. I wish to obtain an opinion from my accountant. Can the disclosure be prohibited by the HOA?

Are Florida Condo Associations exempt from any taxes?

Posted on Tue, Dec 23, 2014 @ 08:00 AM

Tags: Florida, Budgets & Finance, Condo Association Management, Condo & HOA Law, CCR, Bylaws & Rules, Taxes

Florida Condo Associations tax exemption questions 122314 resized 600

Where can I find out more about Florida Condo Associations and exemption from taxes? As well, how can I file for a refund for my condo association?

How does each state regulate property managers differently?

Posted on Mon, Jun 23, 2014 @ 08:24 AM

Tags: Florida, New York, Property Management, Condo Association Management, Board of Directors, Condo & HOA Law, CCR, Bylaws & Rules, South Carolina, New Jersey, Taxes, Iowa, Illinois, California, Pennsylvania, Minnesota, Ohio, Michigan, Massachusetts, Missouri, Maryland, North Carolina, Delaware, New Hampshire, Georgia, Connecticut, Washington

HOA and condo management state regulations 062814 resized 600

I'm interested in finding how each state regulates the HOA /condo association property managers?

Can I claim a condo association assessment for tax purposes?

Posted on Sat, Jul 16, 2011 @ 10:58 AM

Tags: Taxes, California

I live in a 32 unit bldg; it is 30 years old. Due to termites, all the common area surfaces were replaced, including decks, railings, etc; the siding was replaced with Hardee board type material. After the work was finished, we were "special assessed" about $30K. I would like to know if I can claim it on my taxes - either state and/or federal. And if so, how do I do it? I live in California.

Personal tax benefits of renting your property

Posted on Fri, Jan 8, 2010 @ 08:24 AM

Tags: Taxes

I would like to know something about tax benefits if I fix up at least one of my condos to rent out. I have two, and probably will keep one condo , but the other I'd like to sell or rent. So what are the rules regarding how or when I should fix up the place for maximum tax benefit? Thanks... I don't need a particularly detailed answer because I know it may be complicated, a brief outline will help. Or perhaps point me in the right direction on the web for details. Thanks again. Cindi

Learn about condo association management

Do HOAs and Condo Associations Pay Taxes?

Posted on Fri, Feb 13, 2009 @ 06:35 AM

Tags: Budgets & Finance, Taxes

An important aspect of HOA finances is tax liability. Generally, HOAs are exempt from state and federal income taxes if:

  • Most of its HOA units are used by individuals as residences
  • It's organized and operated to buy, build, manage, maintain, and care for HOA property
  • At least 60% of its gross income for the taxable year comes from HOA membership dues, fees, or assessments
  • None of the HOA's net earnings or income goes to any individual, except if it's by a rebate of excess membership dues, fees, or assessments, for example

State and federal law require the HOAs and Condo Assocations to make an election to be treated as a tax-exempt organization. Also, even if the HOA is tax exempt, it must file a federal tax return.

The tax exemption excludes from the HOA's gross income all of the membership dues, fees, or assessments collected by the HOA. In addition, the HOA gets an automatic $100 deduction on its gross income. Essentially, then, a tax-exempt HOA is taxed only on its investment income, if it has any, and any other income it might have, such as from renting out a recreational facility to non-member/owners, less the $100 deduction.