Kaman Cusimano Logo

Condo | HOA Lawyers

Tax Facts

In case your board is unaware, virtually all community associations must file a federal income tax return.  Associations must file or request an extension on or before March 15.  As you prepare to file the association’s 2015 tax return, the board should discuss the filing options with the association’s tax professional.  The two most common form associations file with the IRS are the standard 1120 form and the community association specific 1120-H form.

The board should discuss these options with the association’s tax professional.  The discussion should include more than simply a statement of the relevant tax rates and total taxes owed.  The board should ask about (1) whether Association is eligible to file an 1120-H, (2) the potential risks and benefits associated with each filing option, (3) the risk of additional taxes and/or an audit associated with each selection, and (4) the proper accounting practices necessary to reduce both the association’s risk of audit and to limit its income tax liability.


Three bars icon gold

Recent blog Posts

Three bars icon gold

Partner Nicholas Meinert Presents at Northern Ohio CAI Chapter on the Corporate Transparency Act

On June 14, 2024, Partner Nicholas Meinert presented to the Northern Ohio Chapter of the ...
Read More →

Partners Dan Miske and Lydia Chartre presented at Wisconsin’s Chapter of CAI on reserves and lending

On May 23, 2024, Partners Dan Miske and Lydia Chartre presented a webinar for the ...
Read More →

Strengthening Community Associations: The Vital Role of a Comprehensive Assessment Recovery Policy and Procedure

Community associations are founded on principles of shared responsibility and collective maintenance. From maintaining common ...
Read More →

Partner Nick Meinert presented at OLCA’s Spring Conference

Partner Nicholas Meinert gave a presentation at the 2024 Ohio Lake Communities Association’s Spring Conference. ...
Read More →