Cohousing-L Mailing List: Core Group Tax Filings

[Dan Suchman (71756.2661]

On March, 13, 1995, "MyNickle" of Westchester Cohousing, wrote:

Quote: =======================================================

We at Westchester Cohousing were advised by our attorney not to worry about
what type of entity we were yet.  However, I am having trouble finding out
what IRS tax form we should file.  The IRS hotline told the corporate form,
one accountant said the 990 for non-profit and a second one told me 1065 for
investment partnership.  Does anyone have any experience with this or any
thoughts?  Thanks!

End Quote. ====================================================

My former groups, Miami Cohousing Project and Broward Commons, both found it
convenient to organize as a non-profit (but not necessarily tax exempt under IRS
section 501(c)3) corporation.  This structure provided the members with the
classic advantage of incorporation: limited liability, centralized management
and perpetual existence.  It also gave the group some credibility.  Our
accountant prepared and filed for us, annually, IRS Form 1120-H, titled "U.S.
Income Tax Return for Homeowners Associations".  It is a one page form.  So far,
these groups have had no problems with IRS and no tax consequences to members.
For further information, I suggest that you consult an accountant that is
experienced in advising homeowners' associations. 

My current community is a stock cooperative association.  I am not familiar with
its tax filings.

Good luck.

Dan Suchman
Winslow Cohousing Group
Bainbridge Island, WA