Re: Cohousing communities and tax-exemption, 501c3
From: Ann Zabaldo (zabaldoearthlink.net)
Date: Fri, 12 Jun 2015 07:31:26 -0700 (PDT)
Hi all --

Is there a cohousing community that is either organize for development purposes 
as a 501(c)(3) or as a built community that is a 501(c)(3)?

I can't figure out under what scenario this could possibly happen but I'm sure 
open to finding out! So if anybody out there has done this please step forward 
and tell us under what circumstances you were able to put this together. 

Sent from my iPhone

> On Jun 12, 2015, at 8:27 AM, Diana Carroll <dianaecarroll [at] gmail.com> 
> wrote:
> 
> 
>> On Friday, June 12, 2015, Sharon Villines <sharon [at] sharonvillines.com> 
>> wrote:
>> 
>> 
>> The fear of taxes and the desire to avoid them is actually not a big
>> concern, however. As a condo, the income is offset by expenses so there is
>> little if any profit. Until your reserves are large enough to earn
>> significant earnings in interest, there will be little if any income to tax.
> 
> That depends.
> 
> Any income from a source other than dues (assessments) is taxable.  So, for
> instance, we have a usage fee for overnight stays in the guest room, and we
> request contributions when an outside group uses our common house for a
> function.  These are taxable at 30% on the HOA tax form (1040h?). For us
> that amounts to a few hundred a year in taxes...not enough to make a huge
> difference. But it might account for more some communities.
> 
> Being a qualified non profit also has the potential to benefit individuals
> in the community.  "Donations" would be tax deductible for the donated.  We
> don't really have donations, but I know some communities have fund raising
> efforts beyond assessments. Like, a community may request pledges from
> individual households to build, say, a playground or swimming pool. It
> would be hard to convince the IRS an HOA served a larger community good but
> if you could, then individual contributors would see a benefit.
> 
> Diana
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