Homeowners' Association: Federal Tax Issues (Currently Unavailable)

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

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

Publication Date: March 2020

Designed For
CPAs, Property Managers, Investors, and other accounting professionals working in the tax areas of HOAs. The tasks include revenue and expense issues as well as capitalization issues and ownership issues. The actual ownership of common property in an HOA influences how capitalization and depreciation will be handled.

Topics Covered

  • Tax differences between associations like residential and large amenities types of HOAs
  • Tax differences between Homeowners' Associations (both residential and those with commercial amenities) as required
  • How the differences effect the filing of federal and state tax returns.
  • Is depreciation any different in an HOA compared to another entity?
  • What level of service is required and when
  • Revenue Recognition specifically for HOAs

Learning Objectives

  • Identify the types of tax returns required to be filed by a Homeowners' Association
  • Describe the mechanics of providing tax returns to a 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 Homeowners' 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 Homeowners' Association
  • Identify correct statements regarding CIRAs
  • Describe depreciation and taxes in regards to Homeowners' Associations

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Taxes (1 hour)

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

Advance Preparation
None

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