income, user fees, and other similar fees generated as income by the association.


Potentially taxable income may include interest and investment income, user fees, and other similar fees generated as income by the association.


  or allocable indirect expenses, against potentially taxable income. As an example, and in the case of interest income,  of the management fee against this income, due to the fact that management companies spend time on accounting and other  much to invest.


Associations do not  


Most associations generally start out as a  communities have specialized tax rules and are not discussed in this article, since   Please also note that Washington State has   associations that have no taxable income.  


 


Continued On Page 16 


Form 1120H


HOA Tax Forms


Form 1120H    


   and residential tests. Net taxable user fees, such as clubhouse rental   


Form 1120


Form 1120    of associations. Because of this complexity, there is risk that if the      tax planning.


I generally recommend that all associations vote on Revenue Ruling   


Form 990


Form 990501(c)7   


     


501(c)4  entities generally pay no federal tax on interest and investment  previously mentioned returns. I see this status generally granted to 


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