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Homeowners associations are nonprofits, meaning they are probably exempt from paying taxes. However, there are different categories of nonprofits, with HOAs classified as common interest realty associations (CIRA). Under federal law, CIRAs must file tax returns. So, why do homeowners associations have to file tax returns, yet they are nonprofit organizations? Let’s find out. Why…

While HOAs are nonprofit organizations, the IRS regards them as a corporation. In any case, HOAs collect various fees from homeowners to cover repair and maintenance costs. For this reason, HOAs must file tax returns annually on these dues. The good news is that some HOA fees might be eligible for tax deductions, lowering your…

A homeowners association (HOA) comprises a board of directors that enforces community rules, maintains common areas, mediates between members, and manages public resources. It also collects monthly or annual fees from residents and allocates funds to various projects. This point brings us to the question: Why do you need a CPA? This guide explains why…

Homeowners associations (HOAs) are nonprofit organizations, meaning they operate with no intention of generating a profit. The funds collected by the association cater to the welfare of the community. Given the financial complexities involved with nonprofits, many HOAs turn to bookkeepers and accountants to handle their finances. This guide explains who to hire between nonprofit…

An HOA cannot operate without adequate funds. It requires finances for repairs, renovations, upgrades, routine maintenance, long-term projects, and daily expenses. Misappropriation of finances and resources can impede an HOA from achieving its goals. As such, checking the financial health of an HOA is essential for all community members. This guide explains how to check…

HOA audits are critical to ensuring transparent financial reporting. They can be internal or external, depending on the size of the HOA and relevant state laws. So, how often should an HOA be audited? This guide explains everything you need to know about HOA audits and why it is essential. The Importance of HOA Audits…

HOA accounting is an integral part of managing a homeowners association. It ensures financial statements are accurate and up to date. Its primary objective is to help HOA communities attain financial stability and success. However, tracking financial records can be tedious and challenging for most HOAs. After all, these associations comprise part-timers with multiple responsibilities.…

Filing taxes is mandatory for all businesses. However, it can sometimes be daunting for emerging businesses since it is not a one-size-fits-all solution. You may have to deal with different tax categories and returns. You will also encounter various tax forms you must fill out when filing your taxes. This guide provides a small business…