While they can be organized as a nonprofit, HOAs are generally de-facto nonprofits. The HOA is not generally “in business” but rather collects funds and expends them to meet the needs of owners. Most will file as a nonprofit as they can categorize funds earmarked for future capital projects as such. Being nonprofit does not mean the HOA will not have tax payable on investments or income from rentals/amenities. Your HOA will have to file each year regardless of nonprofit status so and should seek advice from a tax professional.
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