Taxes

Started by SusanK5 • 2 replies • 1298 views

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SusanK5 (Utah)
Posts: 30

Posted:

My HOA is in Utah and we are a non-profit corporation. I know we have to pay taxes on our interest income. Does anyone know what we can take as deductions?

RogerB (Colorado)
Posts: 5,067

Posted:

Susan, google and find IRS form 1120-H to file your federal taxes. You will owe only "outside income" (often only the interest income from reserve investments) and not on the HOA's assessed income. You can deduct state tax and costs charged by an independent investment adviser plus the standard deduction of $100.

I don't know what form is used for Utah taxes which may be due.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Roger,

According to the Form 1120-H, IMO, costs charged by an independent investment adviser could be deducted but I doubt state taxes could be deducted as only ". . .expenses directly connected to the production of gross income, excluding exempt function income) can be deducted. On the other hand, if the assn is filing a form 1120, then ALL expenses can be deducted and tax is paid on the net profit and there is no $100 deduction.

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