Section 528

Those passing the first four tests mentioned qualify as hoas for tax purposes.

Section 528. 528 b tax imposed a tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. A homeowners association shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes. As mentioned above the tax reform act of 1976 created treasury code section 528 was created by.

A membership organization formed by a real estate developer to own and maintain common green areas streets and sidewalks and to enforce covenants to preserve the appearance of the development may be exempt as a social welfare organization if it is operated for the benefit of all the residents of the community. A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. A homeowners association as defined in subsection c shall be subject to taxation under this subtitle only to the extent provided in this section.

Certain homeowners associations on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Internal revenue code 528. C homeowners association definedfor purposes of this section.

Such tax shall be equal to 30 percent of the homeowners association taxable income 32 percent of such income in the case of a timeshare association.