Homeowner and Condo Associations
Taxes, the IRS, and the California State Franchise Tax Board
Your California homeowner or condo association can avoid complicated filing of multi-form corporate income taxes each year.
It can
also avoid paying taxes on
income collected for acquisition, construction, management, maintenance, and
care of association property.
Of course, if your Homeowners Association (HOA) is not set-up properly and compliant with the filing requirements, the association can end up being taxed on the assessments collected from the members that exceed the annual expenses. To makes sure your HOA doesn't pay more taxes you need to take the right steps.
Sterck Kulik O'Neill can help!
Our
professional San Francisco CPA's will:
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Talk with you about the advantages — and potential dis-advantages — of using the special Home Owners Association rules of Section 528 of the IRS code.
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Help you file the appropriate Federal and State forms to establish your association as either an unincorporated or incorporated organization.
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Prepare and file on-going HOA taxes with California and the IRS.
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Provide professional, independent tax preparation service, removing the potential for second guessing by other members of the HOA.
We can do more than prepare your tax forms, too!
We offer audits, reviews of financial controls, and also provide customized training seminars on finances for HOA board members.
Of course you can do it yourself...
Hiring a professional Certified Public Accountant gives you peace of mind, extra time, and guaranteed quality results.
But, there's nothing magic about what a CPA does.
If you're game...
Sterck Kulik O'Neill is happy to provide links to the forms and information which can help you prepare your HOA forms yourself.
Of course, these are general resources. For advice on your specific situation, please contact us or another Certified Public Accountant! (See our terms of use!)
Unincorporated Associations file:
STATEMENT BY UNINCORPORATED ASSOCIATION – Form UA-100
http://sos.ca.gov/business/other/forms/lp-ua-100.pdf
This form is filed every 5 years unless the information changes.
STATEMENT by COMMON INTEREST DEVELOPMENT ASSOCIATION – Form SI-CID
http://sos.ca.gov/business/corp/pdf/so/corpua_cid.pdf
This form is filed every two years.
Corporations file:
STATEMENT OF INFORMATION - DOMESTIC NONPROFIT CORPORATION – Form SI-100
http://sos.ca.gov/business/corp/pdf/so/corp_so100.pdf
This form is filed every two years.
STATEMENT by COMMON INTEREST DEVELOPMENT ASSOCIATION – Form SI-CID
http://sos.ca.gov/business/corp/pdf/so/corpua_cid.pdf
This form is filed every two years.
About Taxes:
The first thing any HOA (incorporated or unincorporated) needs is a Federal Tax
ID (FEIN). This is done by filing a Form SS-4 with the Internal Revenue Service.
http://www.irs.gov/pub/irs-pdf/fss4.pdf
In order to be considered an exempt organization in the State of California the HOA must file Form 3500 http://www.ftb.ca.gov/forms/2008/08_3500.pdf to establish its exempt status.
A HOA files Form 1120 or 1120H with the IRS annually.
A California HOA that is not an exempt organization files Form 100.
If an exempt HOA's gross receipts exceed $25,000 it files:
Form 199 with the Franchise Tax Board.
