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Kuester Management Group Urges Tax Preparedness for HOA Communities

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Kuester Management Group shares some tips for homeowners associations gearing up for tax time.

CHARLOTTE, N.C. - eTradeWire -- It's the time of the year when many individuals and business organizations are turning their attention toward filing income tax returns. Homeowners associations are no exception. In a new statement to the press, Kuester Management Group urges HOA Boards to prioritize tax preparedness.

"A common misconception is that HOAs are non-profits, and thus do not have to file tax returns," comments Bryan Kuester, President of Kuester Management Group. "The reality is, even with non-profit intent, most HOAs are on the hook to the IRS. The good news is that, just because you have to file, that doesn't mean there will be an actual tax liability. In fact, most HOA income will be determined to be exempt."

Kuester advises HOAs to seek guidance from an accounting firm or tax preparation specialist who has experience working with HOA Boards. "Your HOA management company should be able to help," he notes.

As for specific forms, Kuester says the typical HOA will file either form 1120 or form 1120-H. HOAs should also be attentive to Section 528 of the tax code; under this section, most HOAs will find that they qualify for their income to be mostly or completely tax-exempt. "Again, an experienced HOA tax professional can provide further counsel," Kuester explains.

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Another salient detail is the filing deadline. Kuester confirms that most HOAs will need to file by April 15th, though the deadline is different for Associations that use something other than January-December for their fiscal year.

"Be mindful of all of these details, and start making plans for a smooth, streamlined filing season now," concludes Kuester.

Kuester Management Group provides guidance to HOA communities throughout North and South Carolina, including assistance with financial planning and tax preparation. Learn more about the company and its services by visiting www.kuester.com.

ABOUT:

Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.

Contact
Bryan Kuester
Kuester Management Group
***@kuester.com


Source: Kuester Management Group
Filed Under: Accounting

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