Homeowner Association Audits, Reviews, and Accounting Services

A CPA Firm for HOAs

Here at Synergy CPA & Advisor, we are experienced in providing audit, review, and tax services to a diverse range of community associations, including:

• High-rise buildings
• Single-family homes
• Condominiums
• Townhomes
• Mixed use developments
• Commercial developments.

Questions we sometimes get: 

Why would an association need an audit or review?

• It may be required by the association's governing documents.
• Your state laws may require it.
• Concerns with how the financials and money are being handled.
• A change in management companies and want to make sure the transition was smooth and complete.

What type of tax return is an association required to file?

• It depends.  The simple answer is, for federal purposes, most residential associations will fall under IRC section 528 and file a Form 1120-H tax return.  However, the association has the option to file under IRC section 277, which requires Form 1120.  However, it is not always so simple.  There are many factors to consider.  You would need to discuss these options with your association's tax preparer.
• For state purposes, that will depend on the state. Again, you would need to discuss these options with your association's tax preparer.

Each state has their own rules for governing residential associations.  For example, in California, associations are governed by: The Davis-Stirling Common Interest Development Act.  

Click below for additional information.

http://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=CIV&division=4.&title=&part=5.&chapter=1.&article=&goUp=Y