Tax Issues

Condo and Homeowner Associations Must File GET Returns or Pay the Price

There are different types of nonprofits, including homeowner and condominium associations. However, not all nonprofits are the same when it comes to tax deductions and tax liability. You may have heard the term “501(c)(3) organization” associated with your favorite nonprofit charity. The reference, 501(c)(3), comes from the section of the federal Internal Revenue Code describing such entities. Contributions to 501(c)(3)s are usually deductible on a donor’s income tax return. There are a host o [...]

Tax Issues for Owners in Homeowner Type Associations

There are various income and related tax issues faced by unit owners in homeowner type associations. Due to space limitations, it is not meant to be a comprehensive discussion of these tax issues. Such a document would easily run to several hundred pages. Our hope is that you are made aware of these issues and to stimulate discussions with your professional tax preparer. This paper addresses tax returns filed by individuals. It does not deal with corporations, S-corporations, partnerships, tim [...]

2017-10-17T19:19:43+00:00 Tax Issues|

GET, TAT & TOT Requirements for Homeowner Associations

Do you get confused distinguishing between GET, TAT and TOT for Homeowner Associations? Hawaii General Excise Tax (“GET”), Hawaii Transient Accommodations Tax (“TAT”) and the Hawaii Time-Share Occupancy Tax (“TOT”)- these three taxes are based on gross income or receipts. In other words, they are separate and distinct from the Hawaii income tax which is based on the net income. Hawaii GET – It is Not a Sales Tax Referring to the GET as a sales tax is wrong. The GET is an excise tax, not a s [...]

2017-10-17T19:26:46+00:00 Tax Issues|

Taxation of Condominium, Community and Homeowner Associations

The law is clear that an association’s Board of Directors is responsible for the filing of the annual federal and State income tax returns, regardless of who actually prepares them. In addition, the law imposes a fiduciary duty on directors. As a result, Board members should take an active role in understanding the tax issues involved because a substantial overpayment or underpayment of an association’s income taxes could be construed as a breach of their fiduciary duty. This memorandum deals [...]

2017-10-17T18:56:00+00:00 Tax Issues|
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