IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.


Mobile Site RSS Feeds

DOR > About Us > Resources > Tax Talk Blog > Part three of our Believe It or Not tax oddity series – Homeowner Associations Part three of our Believe It or Not tax oddity series – Homeowner Associations

July 6, 2009

Homeowner associations have gotten a bad rap over the last several years. I should know – I’m one of the ones grousing about them, with the annual dues, not to mention some of the draconian restrictions they impose upon us poor mortals. OK, I call not being able to leave my recreational vehicle permanently parked on the street a little bit draconian.

Now, to be fair (and balanced), my HOA does provide a list of good services. For example, private contractors are hired to both plow our snow-covered streets in the winter and to mow and maintain the common areas in the summer. Planting an occasional flower or shrub is kind of nice, too. Oh, OK, maybe we do need them. After all, I really don’t want my neighbor to build an orange-colored mini-barn in his front yard.

That said, there is something peculiar to these associations taxwise. Indiana requires them to file and be taxed as if they are a for-profit organization. That’s because in Indiana a condominium management, residential real estate manage­ment, or timeshare association is subject to tax as a corporation if it elects to be treated as a homeowners association. It is not con­sidered a nonprofit organization for Indiana tax purposes. These associations must register with the Secretary of State’s office and file and pay tax using Form IT-20.

Often this is news to nascent associations first dipping their toes in the proverbial waters of doing-business in Indiana, especially since many file as exempt nonprofit organizations for federal tax purposes. So do a public service and let your association in on the state filing requirements – you know they’ll thank you!

If you would like to submit a question or topic suggestions, please send them to feedback@dor.in.gov.