Tax Implications of Hosting HOA Fundraisers in Florida

Question:

Our Activity Committee wants to have money making events, but we are told we are only allowed 2 a year , then we have to pay taxes

– John

 

Answer:

Hi John,

If your HOA files a federal return on Form 1120, you are required to file a Florida Corporate/Franchise Income Tax Return (Form F-1120), regardless of whether any tax is due. However, if you file federal Form 1120-H, then you are not required to file a Florida corporate income tax return. It is best to seek help from an accountant as well as an attorney if you wish to hold more than two fundraisers a year. Additionally, keep in mind that hosting fundraisers does pose certain liabilities, too, such as security issues, slip-and-fall injuries, etc.

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

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