Representative Vern Buchanan (R-FL) is introducing bipartisan legislation to permanently extend and expand mortgage tax deductions and cut taxes on condominium owners. Named the Middle-Class Mortgage Insurance Premium Act, Rep. Buchanan’s bill revives a tax deduction for mortgage insurance premiums that expired in 2021. Read the article…………………………….
Income tax filing requirements for community associations (IL)
It comes as a surprise to some, but condominiums and other forms of community associations are entities that must file income tax returns. Even though community associations are “not-for-profit” corporations in Illinois, income tax filing is required. Here is a brief summary and explanation of the filing requirements relating to the taxation of community associations. […]
Top 10 Tips for HOA Tax Season
Filing taxes for a homeowners association (HOA) is a crucial responsibility that ensures compliance with federal and state tax regulations. For many HOA board members, especially those new to the role, the process can feel complex and overwhelming. However, failure to file taxes properly can lead to penalties and unnecessary complications. Read the article…………………………….
City Partners With AI to Rework Condo Property Tax Assessments (NY)
The robots are coming! The robots are coming! New York City’s arcane, unfair and unloved property tax system is about the get help from a new source: artificial intelligence. The Department of Finance has partnered with technology firm C3 AI for a six-month pilot program that will explore using AI to calculate the assessed value […]
Why do condo owners pay same mil rate when they receive fewer municipal services? (ME)
“How come cities and towns charge us or other associations the same mil rate, but they don’t collect our trash or plow the complex? So basically, the only service our condo owners receive is police and fire if someone has an emergency? That doesn’t seem fair.” Read the Q&A………………………………..
Essential Tax Season Insights for Every HOA Board
Did you know that tax season isn’t just for individuals and businesses? It’s an important time for HOAs too! Managing taxes might not be the most fun or glamorous part of running a community, but it is a crucial part of the job for keeping things on track financially. Here’s what your HOA needs to […]
HOA Fees Can Be Tax-Deductible: Expert Explains What You Can Claim Back
It’s officially tax season. Attempt to control your glee. But seriously: Monday, Jan. 27, 2025, was the first day that the Internal Revenue Service started accepting and processing 2024 income tax returns. The deadline to file is Tuesday, April 15, 2025, which we all know is when you’re actually going to file (join the club!) […]
Condo owners see biggest jump in Anchorage property tax valuations (AK)
If you own a home in Anchorage, you’ve likely seen it go up in value; Municipal Assessor Jack Gadamus said the average single-family home in the Anchorage Bowl is now valued at $477,263, up 6% from last year. But people who own condos saw the biggest jump. While the average condo valuation increased 15%, Gadamus […]
New Hampshire Mobile Home and Condo Property Taxes Inexplicably Triple
Living in a mobile home or condominium in New Hampshire won’t save you money this year. Residents in Rochester experienced a dramatic spike in their tax property tax bills — with some seeing bills nearly triple following city-wide property value reassessments. What’s caused ire for many locals is that mobile home values shot up by […]
A New Tool to Help Co-ops and Condos Cut Emissions: Tax Breaks (NY)
For co-op and condo boards, the first deadline for reporting on their buildings’ carbon emissions under Local Law 97 is looming on May 1. While some 90% of the 50,000 covered buildings are already in compliance with 2024’s carbon caps, that number will drop to around 50% when the caps become more stringent in 2030. […]
Suit Accuses County of Imposing De Facto Tax on Homeowners for Water Service (CA)
The homeowners’ association of a well-to-do Pleasanton golf community has sued the county over water fees. The Castlewood Property Owners Association (CPOA) recently filed suit against Alameda County, alleging the Board of Supervisors failed to follow the law before imposing a $1.4 million loan on the organization’s members to pay for their water and sewer […]
Lost Creek neighborhood sues city over tax efforts (TX)
The Lost Creek Neighborhood Association and two property owners in the area that disannexed from the city of Austin last September have sued the city after residents discovered that the city is still expecting them to pay property taxes. According to attorney Bill Aleshire, who is representing the plaintiffs, the city says it will continue […]
Rochester mobile home, condo owners speak out on big tax hikes: It’s not ‘right or fair’ (NH)
Residents of mobile homes and condominiums are speaking out after the city’s property revaluation process resulted in large tax increases, on average much higher than what single-family homeowners are seeing. A report by Marybeth Walker, the city’s interim chief assessor, shows the disparity. Condo values went up 94% on average and mobile home values went […]
How Florida Homeowners Can Save on Property Tax
Floridians burdened by rising homeowners association (HOA) fees and skyrocketing insurance costs could now get some relief by applying for the state’s homestead exemption, a tax benefit which can help them save up to $50,000 on the taxable value of their properties. Read the article…………………………….
Are HOA fees tax deductible? Sometimes — here’s when.
More than 75 million Americans live in one of the 365,000 communities with a homeowners’ association (HOA), according to the Foundation for Community Association Research. This includes people living in single-family homes, condos, or co-ops. If you pay HOA dues, you’re likely wondering whether these fees are tax deductible. The short answer is usually no […]
Marin County property mistakenly sold at tax auction for $6,600 (CA)
A group of Tiburon residents is battling to reclaim a property that Marin County mistakenly sold at a tax auction. The buyer, a limited liability company called AssetRenew, scooped up the parcel for $6,600. Now the company wants the Tiburon View Homeowners Association to pay $1 million to get it back, or pay rent to […]
New J-51 Tax Break to Benefit 166,000 Co-op and Condo Owners (NY)
Like Lazarus, the cherished J-51 tax break has risen from the grave — and some 166,000 co-op and condo apartment owners citywide stand to gain from the resurrection. After a two-year absence, the tax break, which helps defray the cost of repairs to certain multifamily buildings, was revived by a vote of the city council. […]
NEW AUDIT: NYC Comptroller Lander Finds DOF Improperly Granted $6.5+ Million in Co-op/Condo Tax Abatements Since 2019 (NY)
In a new audit, New York City Comptroller Brad Lander found that the Department of Finance (DOF) improperly granted Co-op/Condo Tax Abatements to 720 units between Fiscal Years (FY) 2019–2024, costing the City at least $6,465,892 in lost tax revenue. Read the article…………………………….
Maui County trying to collect millions in overdue visitor lodging taxes (HI)
Hundreds of property owners who have failed to pay Maui County the 3% transient accommodations tax for visitor lodgings have been receiving letters saying they need to pay up, and fast. In November 2021, Maui County started charging the tax after the state took away the counties’ share of the statewide pot. Each county was […]
Are HOA Fees Tax-Deductible? Learn When You Can
Learning to plan ahead is a great strategy when it comes to taxes. Many Americans are looking for ways to limit what they owe via credits or deductions. Yet, with ever-evolving regulations and sometimes arcane tax laws, it can be tricky to do so. When it comes to homeowners association fees, for example, it can […]
Colorado resort communities want to impose a vacancy tax on unoccupied homes
A consortium of mountain towns will push Colorado lawmakers this year to pass legislation that would enable local governments to ask voters to tax homes that sit empty for most of the year. There are no communities in Colorado that tax empty homes, but the growing challenge of building affordable housing for workers in mountain […]
New York City’s Hidden Water Tax May Cause 8% Increase in Bills
New Yorkers love to complain about taxes, including but not limited to property taxes, sales taxes and income taxes. Now all city residents — whether they live in co-ops or condos, rental buildings or single-family homes — may soon have a new tax to complain about: a hidden tax on water and sewer service that […]
Flip Taxes: Co-Op & Condo Boards’ Tool for Boosting Reserve Funds (NY)
It began back in the 1970s as a tool to discourage real estate speculators and to avoid assessments and increases in monthly charges. Today it is primarily a tool for co-op and condo boards to keep their reserve funds robust. And when it comes to setting one — and determining who pays it — there’s […]
MHH Condo/Co-op Digest Vol. VI, April 2024 (NY)
Court Of Appeals Decision Threatens To Upend NYC Property Tax System: On March 19, 2024, the New York State Court of Appeals issued a decision in Tax Equity Now NY, LLC v. City of New York et al., Index No. 153759/2017 (Sup. Ct. N.Y. Co.), opening up a path forward to challenging New York City’s […]
State Court Ruling Opens Door for Major Changes to NYC Property Tax System (NY)
A recent state court ruling has created a path toward major changes to New York City’s property tax system — albeit one that could have mixed consequences for co-ops and condos owners. In a 4-3 ruling, the New York Court of Appeals allowed a lawsuit alleging the city’s property tax system is unfair and illegal […]
How Condos are Reassessed (IL)
The job of the Assessor’s Office is to calculate a fair market value for your property. The market value is how much your property could sell for based on the current real estate market. For residential properties, including condos, your property’s assessed value equals 10% of its fair market value, per Cook County ordinance. Read […]
NYC pols urge Albany to OK tax break for ‘green’ mandate that could cost co-op, condo owners $20K
New York City Council members feeling the heat from thousands of angry co-op and condo owners are urging state pols to OK tax breaks over a new “green” mandate that could cost more than $20,000 per unit. The City Council had actually approved the mandate, the Climate Mobilization Emissions Law, in 2019 requiring residential buildings […]
2024 Property Taxes: Impact on Chicagoland Community Associations (IL)
Cook County properties are reassessed on a triennial schedule. Every three years, the new valuations – along with appeals, exemptions, local tax levies, and assessments of nearby properties – determine the amount of future property tax bills. Read the article…………………………….
Mayor Adams eyes NYC property tax breaks as co-ops, condos face crunch from ‘green’ mandate
Mayor Eric Adams said he’d consider property tax breaks for middle-class co-op and condo owners who have to pay for pricey building upgrades when a new “green” mandate icks in. Hizzoner said he was open to tax abatements as anxious residents brace for the costs of Local Law 97, which covers 800,000 co-op and condo […]
Important Tax Deadlines for California HOAs
While understanding tax deadlines and requirements is crucial for any HOA board, navigating through these can be complex and overwhelming. The intricacies of tax filings often require professional guidance to ensure compliance and avoid penalties. In California, HOAs are subject to various tax reporting and filing deadlines, each with its own set of requirements and […]
IN Tax Court dismisses appeal in Marion County, HOAs assessment dispute
A group of Marion County homeowners’ associations prematurely filed an appeal of their property assessment case’s dismissal at the administrative level, the Indiana Tax Court ruled in granting a motion to dismiss the appeal and remanding the case to the Indiana Board of Tax Review. Read the article………………………………..
Association Common Area Can Be Foreclosed and Sold to a Third Party for Unpaid Property Tax (NC/SC)
Our office has had two situations in the last six months where an association failed to pay property taxes on association common area, the tax department foreclosed, and a third-party bought the common area at the tax foreclosure sale. Fortunately in these cases it was not the association pool or clubhouse, but it could have […]
Are HOA Fees Tax Deductible?
If you’re a homeowner, then you’re probably familiar with the HOA, or Home Owners Association. Whether you love it or hate it, it’s an essential part of owning a home. An HOA is essentially an organization within a neighborhood or property that enforces rules and regulations. Read the article………………………………
Residents of East Garrison are coming to grips with taxes and fees that weren’t part of the sales pitch (CA)
Residents were concerned about a recent property tax bill that showed an approximate 40-percent increase in charges related to the CSD, which pays for ongoing services, in perpetuity, for things within the district like park maintenance. (One homeowner who shared their bills from fiscal years 2022-23 and 2023-24 showed a jump from $1,586 to $2,218 […]
Mo Money, Mo Problems? No Biggie for a Homeowner’s Association, Right? (NC)
Almost all community associations in North Carolina are formed as non-profit corporations, which are taxed as corporations. This means community associations should file an IRS Form 1120 (“U.S. Corporate Income Tax Return”) at the federal level. However, a community association may elect to be taxed as a “homeowners association” under Section 528 of the Internal […]
When Can HOA Fees Be Deducted From Your Taxes?
HOA fees are typical for homeowners, but can they be deducted from your taxes? The deductibility of HOA fees depends on various factors. We will provide an overview of HOA fees and taxes, explore the IRS regulations, and discusses potential exceptions and considerations for rental properties and small business owners. Read the article………………………..
Understanding IRS Rules on HOA Reserves: Ensuring Compliance and Financial Stability
As a critical aspect of Homeowners Associations (HOAs) and Community Associations, reserve funds are essential for covering future expenses and unforeseen repairs. However, it’s crucial to comprehend the impact of IRS rules on HOA reserves to ensure compliance and financial stability. In this blog post, we’ll explore the key IRS requirements related to HOA reserves […]
Community Associations and Tax Returns – Yes, You Need to File!
You may have heard rumors that because your community association is a non-profit organization, you are not required to file a tax return. Unfortunately, that is not the case. Even though your association may not owe any taxes, you still need to file federal and state (as applicable) tax returns. Read the article………………………..
Most new Ascension neighborhoods have little-known extra road tax (LA)
If you’ve bought a house in the newest neighborhoods of Ascension Parish over the past two years, you’re probably paying extra property taxes for the long-term maintenance of roads where you live. Read the article………………………..
Illinois Common Interest Communities and Condo Associations Can File Property Tax Appeals on Behalf of Unit Owners
Anyone who has ever owned property in Illinois understands that there exists a potentially never-ending cycle of property tax appeals and assessments because real estate is subject to being re-evaluated or re-assessed either on a 3-year or 4-year cycle depending on which county the property is located. Even further, if there are changes made to […]
U.S. Supreme Court to weigh legality of Hennepin County keeping revenue from seized properties (MN)
The U.S. Supreme Court has agreed to take up the case of a Minneapolis woman in her 90s whose condo was seized by Hennepin County because she didn’t pay her property taxes. The 2015 seizure of Geraldine Tyler’s condo isn’t in question. Nor is the fact that she owed the county some $15,000 in back […]
Gov. Kathy Hochul vetoes bill to close NY tax loophole for condo owners
New York Gov. Kathy Hochul has vetoed a bill that would have closed a loophole in state law that gives tax breaks to owners of big suburban homes classified as condominiums. Read the article………………………..
HOA Tax Returns: Can Your HOA Not File It?
For most organizations, tax season is one of the most stressful times of the year. Homeowners associations are no exception. Here is what you need to know about HOA tax returns. Read the article………………………..
IRS audits Lake Forest POA (AL)
It’s been a tumultuous time in Lake Forest with a faction of homeowners publicly questioning the property owners’ association board and alleging improper financial dealings. Read the article………………………..
What Does IRS 528 Say?
When it comes to federal taxes, many homeowners associations find themselves in a bind. While HOAs are required to pay taxes and file tax returns, they fall into a specific category under the Internal Revenue Service — IRS 528. Read the article………………………..
What Does IRS 528 Say?
When it comes to federal taxes, many homeowners associations find themselves in a bind. While HOAs are required to pay taxes and file tax returns, they fall into a specific category under the Internal Revenue Service — IRS 528. Read the article………………………..
Bill passed by the state legislature looks to close condo “loophole,” what’s next? (NY)
The days of an unofficial property tax discount for certain new build condos could be numbered as Governor Hochul weighs signing legislation that would stop some full-size homes from qualifying. Read the article………………………..
Tax Bill Implications for Condominium Conversions (MA)
Purchasers of units in recently converted condominium buildings need to take measures to ensure that they are staying current with their property tax obligations. The subject building will be taxed as a single-dwelling property until the conversion is accurately reflected in the City of Boston’s tax bills, which can take several months. Read the entire […]
Questions About Filing Your Association’s Federal Income Taxes? We’ve Got Answers
It’s everyone’s favorite time of year again! No, winter is no picnic for those who aren’t fans of cold weather. But the beginning of the year comes with more than just frigid temperatures and a lack of daylight. It also heralds in the menace known as tax season. Read the entire article……………………………….
Tax Abatement Crunch Time: When Must Coops and Condos Pay Their Employees Prevailing Wages? (NY)
Certain cooperatives (coops) and condominiums (condos) that wish to be eligible for the coop and condo property tax abatement are in a mad dash to submit the newly required prevailing wage affidavit. Read the entire article……………………………….