INCOME TAX --HOA--not-for-profit-corporation

I am in Florida--

Have noticed in some of your discussions that a HOA --not-for profit-corp. IS exempt from Federal Income Tax --

I am new President --I have a U.S. Corporation Income Tax return Form 1120
awaiting my signature with an amount owed of almost $2000

We have not shown a profit in past years and i am questioning validity of this return.

Being new i don't quite know where to go -- any help in finding statutes that pertain would be helpful.
Something to have in hand when i go to see Accountant

Thanks Donna

I am hangin on !!

John, file form 1120-H and you will owe 30% on income from outside sources only (less deductions). Outside sources for many HOAs means only interest income from CDs. Other outside income could come from owning amenities for which the HOA receives income, such as owning a golf course where greens fees are charged/received. Assessments, late charges, reimbursement from insurance related to repairs for damages, etc. are all association related income.

Attached is an example of 1120-H which illustrates deductions which can be taken from the taxable income.

Regarding the 10% cash management deduction, I have seen some HOAs list this with an amount which is greater than their investment income. I think that would be a rediculus amount which would be extremely difficult to justify if the IRS challenged it.

Thank you all VERY much ---Looks like this may solve my problem

john g

Will post the outcome