The Tax Man Cometh

This column by Mr. Bendoff of Illinois is a timely reminder that even non-profit corporations like HOAs are required to file tax returns.

http://www.dailyherald.com/article/20121215/entlife/712159953/

By David M. Bendoff

Condominium and other forms of community associations are entities that must account for their taxable income. Even if no tax is owed, there is still a filing requirement.

Today’s column provides brief and general information regarding the alternatives and filing requirements related to the taxation of community associations. When I use the term “community association,” it includes condominium, townhouse and master associations, but does not include cooperative housing corporations.

The laws concerning income taxation are complex. Careful tax planning, and input of an accountant, is required of each community association in order to receive the greatest income tax benefit.

• David M. Bendoff is an attorney with Kovitz Shifrin Nesbit in Buffalo Grove. Send questions for the column to him at CondoTalk@ksnlaw.com. The firm provides legal service to condominium, townhouse, homeowner associations and housing cooperatives. This column is not a substitute for consultation with legal counsel.

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