Cohousing-L Mailing List: Donations to/from HOA and Federal tax (was Re: HELP MAKE COHOUSING MORE AFFORDABLE)

[R.P. Aditya (aditya]

Hi Diana,

On Thu, Nov 21, 2013 at 09:54:37AM -0500, Diana Carroll wrote:
> Does anyone know what the tax laws are regarding deducting charitable
> donations for an HOA?  We file federal taxes using 1040H, and I don't think
> there's a way to deduct charitable donations unless we could demonstrate
> that it's a "non-exempt" expense, but I know some groups file a 1040, and
> maybe that does?
> 
> (Because it might be worth my proposing a donation by our HOA especially if
> it had tax benefits.)

If your HOA receives a donation and it is not an IRS recognized
501...non-profit corporation, then the HOA has to pay the tax as that
income is not exempt according to the IRS. (Great Oak Cohousing, where I
live, in Ann Arbor has had to do this for ANY income outside of
association fees)

If your HOA makes a donation to an IRS recognized (501c3 etc.)
nonprofit, then the HOA should be able to deduct it.

I'm not a tax accountant, but having dealt with this for a few years now
feel confident about this info!

Hope that helps!

-- 
Adi
Great Oak Cohousing
Ann Arbor, MI, USA
http://www.gocoho.org
I think you