Tax Exemptions as Nonprofit HOAs in West Virginia

Question:

Our Property Owner,s Association (Alpine Lake Property Owner’s Association) was formed as a WV non profit homeowners association. However, it files a Form 1120 Corporate income tax return. Can this type of organization file as a non profit and if so, is their any funding from the state or federal government that can help with capital projects?

– Ron

 

Answer:

Hi Ron,

While many homeowners associations are organized as nonprofit corporations, they typically don’t count as exempt organizations under the IRS. Homeowners associations may attempt to file Form 1023 to gain exemption, but there are a number of requirements and approval is rare. The IRS has specifically created a form for homeowners associations — Form 1120-H. Filing this form offers certain tax benefits such as allowing the HOA to exclude exempt function income from its gross income.


Disclaimer:
We are not lawyers. The information provided on this website does not constitute legal advice.

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