I live in a small community, the builder listed a pretty large area as a common area (about 10 acres). My question is if this is given to the HOA do we need to pay income tax on this?
Thanks
2007-08-27 03:33:30 · 3 answers · asked by misty m 4 in Business & Finance ➔ Taxes ➔ United States
When the builder is done building the "common area" becomes the property of the HOA, it's not really "given" to them since it was all incorporated into the cost of your house.
You wouldn't pay an "income tax" on it since it's not income.
Your city, county, and/or state might levy a property tax on the area which the HOA would have to pay.
2007-08-27 09:48:19 · answer #1 · answered by sjoschko 3 · 0⤊ 0⤋
You don't "give" the common area to the builder. It becomes part of the project and each homeowner in the association owns a small percentage of the entire common area
2007-08-27 11:14:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You won't pay income tax on it, but probably will pay a homeowners association fee.
2007-08-27 11:28:53 · answer #3 · answered by Judy 7 · 0⤊ 0⤋