Homeowner Association Audits, Reviews, and Accounting Services

Our owner has more than 15 years experience in working with homeowner and condominium owner associations. We work with property management companies, and also provide bookkeeping to associations that choose to self-manage.   

 As a board member or property manager, you may be asking... 

 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?

• 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.  You would need to discuss these options with your association's tax preparer.
• For state purposes, that will depend on the state.  In California, for example, some items are treated differently for tax purposes as compared to federal law.  Again, you would need to discuss these differences with your association's tax preparer.

Each state has their own rules for governing residential associations. 

In North Carolina, associations are governed by three different statutes:

The NC Condominium Act - Chapter 47C - applies to condominiums created on or after October 1, 1986.

https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_47c.html

The NC Planned Community Act - Chapter 47F - applies to most HOAs created on or after January 1, 1999.

https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_47f.html

The NC Nonprofit Act - Chapter 55A - applies to most incorporated associations if the issue is not specifically addressed in the other statutes.

https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_55a.html

In South Carolina, associations are governed by:

Code of Laws - Title 27 - Chapter 30

https://www.scstatehouse.gov/code/t27c030.php

 If your association is in need of an audit or review, bookkeeping assistance, or tax preparation services, we would be happy to help.