Cohousing-L Mailing List: Re: Taxation of Homeowners' Association Profits -- Blank

[Sharon Villines (sharon]

> Your homeowners' association undoubtedly pays both federal and state taxes
> on interest paid to you on your reserve account, and perhaps on at least
> part of your operating accounts. My question is here is, what other
> "profits" does your HOA pay taxes on, if any.  In particular I'm curious
> about monies collected for use of your guest room(s), or fees you may
> charge to your  residents or to non-resident individuals or groups for use
> of any of your commonly owned facilities or land. A member of our finance
> committee believes that we are liable for 30% Federal tax (and 9 percent
> California tax) on any such fees whether paid by a resident or a
> non-resident (guest).

I'm not a tax expert but reimbursement for expenses are not taxable. Unless
you are running your guest rooms and renting facilities as a business with
profits, they are not taxable according to anything I have read on small
business stuff.

Sharon
-- 
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org


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