Paying IRS / NYC / NYS taxes for condo/coop association?

  Friends, I am the treasurer for a new small 4 unit brownstone. We are about to file the taxes for last year. I understand that for the IRS we need to file 1120H. But what forms do we need to file for NYS and NYC? I can’t seem to find any info on this anywhere. Am I correct to assume that NYS and NYC will consider us a corporation and we need to pay taxes on the paid condo fees collected last year? thanks all 🙂 radu

park_slope_boy

in Taxes 12 years and 2 months ago

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kenyakm1 | 11 years ago

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I am part of a board of a small sell managed condo. Do you have any advice regarding finding a CPA . We are desperately in need of one. Can you suggest the CPA that you use.

kenyakm1 | 11 years ago

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Can you provide the information for your CPA. I am a small self managed condo searching for a cpa for our affairs. Thank you

brokelin | 12 years and 2 months ago

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Of course, any fee we pay at all is essentially a tax.  But no tax was calculated on the amount we collected and spent (or did not collect).  You have to file the form every year.  We paid a standard amount, required with the form filing, each year – it did not vary.  It isn’t that complicated.  A tax accountant, since it isn’t your personal taxes, but you acting for an association of which you are only one member, is highly recommended.  At least for the first year, so you know what is expected, but even thereafter, as there are tax changes that come up at times, and tax professionals follow these.

brokelin | 12 years and 2 months ago

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Yes, I said we paid a standard amount, not tax on what we collected.  The $300 we definitely paid – I remember writing the checks.  I can’t remember if it was called a tax or a filing fee.  If you were to call an accountant who does taxes for some condo associations, I am sure they will anwer your questions for free, as they will be looking for your business.

curiositykilledthecat | 12 years and 2 months ago

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We are a self-managed 6-unit condo, and we hire an accountant to take care of our year-end filings, as well as produce annual finacial statements.  I suggest you do the same–it is about $750, and perfectly well-spent.

park_slope_boy | 12 years and 2 months ago

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Alright all, after hours of discussions with NYS — the following forms need to be filed: CT-3 (for NYS) and CT3m (for NYC) in addition to the 1120H (for IRS). If 1120H income says “0” then this is supposedly line 1 in CT-3 etc.

cupolacoffee | 12 years and 2 months ago

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Have you tried the NYS answer center (phone and FAQ)? http://nystax.custhelp.com/app/home

park_slope_boy | 12 years and 2 months ago

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Thanks for your answers! I am aware of the fact that IRS does not charge ANY taxes for condo associations. However, I am trying to understand what NYC and NYS forms need to be filed. According to a source online that I cannot find anymore: “New York State and City still get a piece of you, and you will at least have to pay the minimum tax each year under Article 9 NYS franchise tax (about $100), MTA surcharge (17% of your franchise tax-yes the MTA gets a piece too) and NYC Corp Tax ($300).”   So I am quite surprised that brokelin (above posting) suggests that NO taxes were paid at all. Any other opinions/info?   Thanks much!

stevecym | 12 years and 2 months ago

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this carpenter is going to stick his neck out here on this one and say that:  No, you do not need to pay taxes on collected condo fees.  I can be pretty sure of that – I mean, as the operator of a corporation, I do not pay taxes on the gross receipts on my business.  Now coop/condo corporation law may be different – maybe there is a way to show some sort of profit (as a contigency fund say) and still not pay taxes – but with a corporation – no profit=no taxes.  Of course, checks written out to pay saleries of people working for the corp (inc members of the board if they are compenstated in any capacity) will be taxed and it will be your corps responsibility to either withold those taxes or 1099 those folks as outside cotnractors.  Now that I said this – which I was not qualified to do – don’t listen to me and go seek an accountant instead. Steve http://brownstoner.staging.wpengine.com/tinkerswagon

brokelin | 12 years and 2 months ago

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My familiarity is with a 4-unit coop, not condo.  We filed the tax forms, but other than some standard fees, we didn’t actually owe taxes on what we collected, and I understand the same is true for condos.  The coop was organized as a corporation under NY law, but it is treated as a non-profit, and the same is true, I believe, for condos.  We had our tax accountant take care of this…most coops do, even the ones, like ours, that manage everything else themselves. I’m guessing small condos have an accountant do the tax forms, too.  Talk to some accountants.