Cohousing-L Mailing List: Re: Question re: HOA taxes

[John Beutler (jabeutler]

I think mixing HOA and development is a bad idea. The development is a finite 
project which should turn over ownership of common property to the HOA and then 
go out of business. The HOA is designed to operate in perpetuity.

JAB

Sent from my tricorder

On Jun 10, 2011, at 12:22 PM, Zita Xavier <zitaxavieris [at] gmail.com> wrote:

> 
> Hi Everyone,
> At Heartwood Cohousing, a private group within our community has developed
> Heartwood Farms. In consideration now is whether or not to officially
> incorporate Heartwood Farms under our HOA structure. One concern is the
> impact on HOA taxes. Now in year three, our very successful Farm is still in
> the building out stage and we are looking for ways to raise money to build a
> barn and some other outbuildings. We know HOAs have to pay big taxes on the
> wrong kind of income, maybe as high as 50%?  Ouch. How would this impact us
> if we're raising large amounts of income, paying back loans, buying assets,
> or saving up to buy future assets?  Can anyone give us some insight on HOA
> tax law?
> Thanks so much,
> Zita Xavier
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at: 
> http://www.cohousing.org/cohousing-L/
> 
>