THE TAX MAN COMETH TODAY

By Eric Glazer, Esq.

Published April 18, 2022

 

We got three extra days this year to pay up.  Three extra days to turn in our income tax forms and pay Uncle Sam.  Instead of April 15th being the day, it is April 18th.  We see it come out of our paycheck each week, we complain.  We fill out the necessary forms during tax season and we hope we donít receive a letter saying something about your friendly IRS agent auditing you.

 

Just to remind you, your condo association or homeowners association works the same way.  It amazes me how many people donít understand it, but every association must file a tax return every year, even if you are a not for profit one.

 

Your tax  return is also like a summary of how good or bad your last year was financially.  Same thing with your year end financial reports each association has to have prepared by the end of April; either a compilation, review or audit depending upon the size of the associationís budget. The report should indicate how much monet=y n=came in and how it was spent. 

 

Failure to file your return by April 18th will get you in trouble with the IRS.  Failure to prepare your year-end financial report by the end of April will no doubt get you in trouble with the DBPR, if you are a condominium.  Trust me, I have seen the DBPR unleash its wrath on associations who have failed to prepare their reports on time.  Weíre talking the imposition of fines seeking several thousand dollars.

 

In a condominium, you pay an additional tax.    The owner of each unit pays $4.00 per unit per year to the DBPR.  All of those funds are supposed to be spent on those who live in condominiums and contribute the money.  Thatís just not the case.  Only about half gets spent.  The other half gets swept into the general revenue fund.  It averages about $6,000,000 annually and  could be put to good price and be responded to more quickly.

 

Unit owners who generally wish to waive reserves can do so.  No such provision exists in the tax code.  Youíre going to be paying for road repairs well in advance of them being necessary.  You have no say whatsoever at the HOA level.

 

And finally, failure to pay whatís due, when itís due will only create heart ache or heart burn.  Either way, your house will be sold at foreclosure sale.  So bottom line, Keeps the assessments rolling in or take a huge risk of you rolling out.

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About HOA & Condo Blog

Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.

 

Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at 11:00 a.m. each Sunday on 850 WFTL.

   

See: www.condocrazeandhoas.com.

   

Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.



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