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

[David L. Mandel (dlmandel]

On what income were you taxed by the state and not the federal government? 
I'm not the one who prepares our returns, but I'm sure I would have heard of 
such a discrepancy. California law tracks the IRC as far as income taxation 
of HOAs is concerned. See the FTB publication 
http://www.ftb.ca.gov/forms/misc/1028.pdf.
It sounds like perhaps whoever handles your taxes never registered with the 
state, a serious oversight. Maybe that's what you did now when you "applied 
for tax exempt status" -- which would not be an accurate characterization, 
since we do have to pay federal and state income tax, but only on non-exempt 
income. The publication has all the information you need to do it 
successfully. I'd even look into a retroactive application -- not likely, 
but can't hurt to try.
David Mandel
Southside Park, Sacramento

----- Original Message ----- 
From: "Ken Lewis" <kenlewisjr [at] yahoo.com>
To: "'Cohousing-L'" <cohousing-l [at] cohousing.org>
Sent: Tuesday, August 28, 2007 11:05 AM
Subject: [C-L]_ tax exempt status for HOAs


> I'm with Nevada City Cohousing in California and last year we owed $5,000 
> in
> tax to the state despite our non-profit status. The federal tax was fine,
> just for interest income, as expected. So, I recently applied for tax 
> exempt
> status, hoping to avoid that large tax hit. We'll see how that goes.
>
>
>
> Does anyone else have experience with this issue? How have other 
> California
> coho groups dealt with this? Were you successful?
>
>
>
> Out of curiosity, I wonder how HOAs in other states are taxed.
>
>
>
> Any insights greatly appreciated,
>
>
>
> Ken
>
>
>
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