Cohousing-L Mailing List: Re: tax exempt status for HOAs

[Ken Lewis (kenlewisjr]

Roger Burson wrote:

> 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?

My understanding (and recent experience) is that it is subject to all the
same taxes, *until* it applies for and receives tax-exempt status. At that
point I'm assuming that we will still be liable for interest income, like
for federal taxes.

Ken