Condos and HOAs: Federal Tax Issues

Author: Pat Patterson

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This course explains the varied and unusual details of Condominium Associations (CONDOS) and Homeowners’ Associations (HOAs) in the CIRA Industry and the issues encountered with filing federal income tax returns. There are specific areas in the Internal Revenue Code that deal with CIRAs and Condominiums. The CIRA industry has tax standards that relate often to state laws and rules for Condominium Associations.

Publication Date: February 2025

Designed For
The course is designed for CPAs, Property Managers, Investors, and other accounting professionals working in the tax areas of Condos and HOAs. The tasks include revenue and expense issues as well as capitalization issues and ownership issues. The actual ownership of common property in a Condo and HOA influence how capitalization and depreciation will be handled.

Topics Covered

• What's a CIRA?
• Tax issues facing CPAs in the Common Interest Realty Association (CIRA) industry for 2025
• Tax issues and the effect of federal income tax laws facing CIRAs
• Information on issues of revenue rulings, tax advice memorandums, and tax cases involving CIRAs
• Accounting and Auditing issues and other tax law issues facing CIRAs
• Other items deemed timely and appropriate

Learning Objectives

• Identify the types of tax returns required to be filed by a Condominium Association and Homeowners' Associations
• Describe the mechanics of providing tax returns to a Condo or HOA depending on the type of CIRA and the level of attention needed
• Recognize the procedures that CIRAs may make concerning revenue, capitalization issues, and deductions for the condo and HOA association
• Identify when an owner/member of an association may be affected by the CIRA's accounting implications
• Identify and explain the capitalization policy of a Condominium Association, a Cooperative Association, and a Homeowners' Association
• Identify ASC topics and how they apply with respect to CIRAs
• Identify a typical receipt for a CIRA

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of CIRA accounting. Federal tax issues and state and local tax issues should be understood.

Advance Preparation
None