Question:
We are a small HOA (7 lots, no common area to maintain). Only collect yearly fees for filings with state of Colorado, and insurance policy for board. We have never filed in the past with Feds and State. We have no taxable income. It is my understanding that we do need to file with Fed and CO. Our Articles of Incorporation were filed in 2004 by developers and the Association is listed as a non-profit corporation. What Colorado tax form do we need to file?
– Therese
Answer:
Hi Therese,
In Colorado, a small HOA that is registered as a nonprofit corporation and has no taxable income is still required to file annual tax returns with both the IRS and the state. Since your HOA is a nonprofit with no taxable income, you should file IRS Form 1120-H (U.S. Income Tax Return for Homeowners Associations). This form is specifically designed for homeowners associations and offers certain tax advantages, such as exempting membership dues and assessments from taxable income.
In Colorado, nonprofit corporations must file an Annual Report with the Colorado Secretary of State to maintain their good standing. This is done online through the Colorado Secretary of State’s website. As for state income taxes, if your HOA is a nonprofit corporation, you must file Form DR 0112.
It is recommended to consult with a tax professional familiar with nonprofit and HOA tax requirements to ensure compliance with federal and state laws.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
