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HOA Management
J & N REALTY, INC.
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June 16, 1989 FTB Notice 89-364 410:BRL:CN-89-364 RE: HOMEOWNERS ASSOCIATIONS, CALIFORNIA - FEDERAL DIFFERENCES Chapter 4 of the Revenue and Taxation Code [§23701 et.seq.] allows exemption from California franchise and corporate income taxes to certain specified organizations as set forth in Revenue and Taxation Code §§23701a - 23701w. Generally, a similar federal exemption is allowed for such organizations. However, the procedure for obtaining exemption under Revenue and Taxation Code §23701t as a homeowners association is different than that required under Internal Revenue Code §528. Under California law, an organization desiring exemption under §23701t must first submit an application for exemption [Form 3500] together with a $25.00 filing fee to the Franchise Tax Board. Only after the Franchise Tax Board issues a determination of exempt status will the organization be considered exempt for California purposes. In contrast, an organization can elect to be exempt for federal purposes under Internal Revenue Code §528 merely by filing Form 1120H for any year. The federal election can then be reversed by filing Form 1120 for any year. Once an organization receives its exemption from the Franchise Tax Board, it remains exempt unless and until the exemption is revoked. Unlike the federal practice for certain organizations such as homeowners associations, an organization may not elect in and out of exempt status for California purposes from year to year by filing different returns. | ||
J & N Realty Inc. -- Property Management Services Real Estate Condominium Homeowner Association Townhouse Townhome HOA Condo Common Interest Development > HOA Law II > HOA -California - Federal Tax Differences We do the difficult immediately; the impossible takes a little longer
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It is the fate of the Property Manager to toil at the lower employments of life; to be rather driven by the fear of evil than attracted by the prospect of good; to be exposed to censure without hope of praise; to be disgraced by miscarriage or punished by neglect, where success would have been without applause and diligence without reward. While others may aspire to praise, the Property Manager can only hope to escape reproach, and even this negative recompense has yet been granted to very few.
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As Property Managers, we all have learned primarily
through our mistakes and pursuits of false assumptions
rather than by our exposure to fountains of wisdom and
knowledge.
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