Re: tax exempt status for HOAs
From: Roger Burson (
Date: Tue, 28 Aug 2007 13:10:00 -0700 (PDT)
Does the "nonprofit mutual benefit corp" designation excempt your HOA from tax 
on interest income? I would think not, but if not then what taxes are avoided 
by such a designation? 

-----Original Message-----
From: Ken Lewis [mailto:kenlewisjr [at]]
Sent: Tue 8/28/2007 1:07 PM
To: 'Cohousing-L'
Subject: Re: [C-L]_ tax exempt status for HOAs
Buzz wrote:

> If the government of California deals with the issue
> of nonprofit status in the same way as other states,
> it will likely only recognize nonprofits that are
> officially recognized by the IRS under section
> 501(c)(3) of the Internal Revenue Code.  

California must deal with it differently. We are officially incorporated as
a "nonprofit mutual benefit corporation" under the law by the same name.
While we are a nonprofit corporation, being tax-exempt is a different
matter. One has to explicitly apply for tax-exempt status.

The encouraging thing is that homeowners' associations are listed as an
example of tax-exempt organizations in California. If we get it, this could
be helpful info for other groups.

Thanks for your reply.


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