Non Profit or For Profit Tax Return?
A Condo Homeowners Association organized as a non-profit corporation in North Carolina chooses to file a For-Profit Federal Tax Return. The HOA operates on a Fund accounting basis with an operating fund and a capital fund. The HOA has net loss carryovers from prior years. What factors would favor filing a for-profit return? Other than avoiding the disclosure and public inspection requirements of Form 990, what are the advantages to the organization of choosing this form of tax return? Does it make any difference? The taxable income is interest. The annual financial statements are audited by a CPA.