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26 U.S.C. § 528 — Certain homeowners associations
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A homeowners association (as defined in subsection (c)) shall be subject to taxation under this subtitle only to the extent provided in this section. A homeowners association shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes.
**(b) Tax imposed** A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. Such tax shall be equal to 30 percent of the homeowners association taxable income (32 percent of such income in the case of a timeshare association).
**(c) Homeowners association defined** For purposes of this section—
(1) **Homeowners association** — The term “homeowners association” means an organization which is a condominium management association, a residential real estate management association, or a timeshare association if—
(A) such organization is organized and operated to provide for the acquisition, construction, management, maintenance, and care of association property,
(B) 60 percent or more of the gross income of such organization for the taxable year consists solely of amounts received as membership dues, fees, or assessments from—
(i) owners of residential units in the case of a condominium management association,
(ii) owners of residences or residential lots in the case of a residential real estate management association, or
(iii) owners of timeshare rights to use, or timeshare ownership interests in, association property in the case of a timeshare association,
(C) 90 percent or more of the expenditures of the organization for the taxable year are expenditures for the acquisition, construction, management, maintenance, and care of association property
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Source file: Laws/federal/codes/united-states-code/title-26/section-528-certain-homeowners-associations--7ae1654b31.md
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Source location: Title 26, Chapter 1, § 528; chapter-001-normal-taxes-and-surtaxes.md
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**(a) General rule** A homeowners association (as defined in subsection (c)) shall be subject to taxation under this subtitle only to the extent provided in this section. A homeowners association shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes.
**(b) Tax imposed** A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. Such tax shall be equal to 30 percent of the homeowners association taxable income (32 percent of such income in the case of a timeshare association).
**(c) Homeowners association defined** For purposes of this section—
(1) **Homeowners association** — The term “homeowners association” means an organization which is a condominium management association, a residential real estate management association, or a timeshare association if—
(A) such organization is organized and operated to provide for the acquisition, construction, management, maintenance, and care of association property,
(B) 60 percent or more of the gross income of such organization for the taxable year consists solely of amounts received as membership dues, fees, or assessments from—
(i) owners of residential units in the case of a condominium management association,
(ii) owners of residences or residential lots in the case of a residential real estate management association, or
(iii) owners of timeshare rights to use, or timeshare ownership interests in, association property in the case of a timeshare association,
(C) 90 percent or more of the expenditures of the organization for the taxable year are expenditures for the acquisition, construction, management, maintenance, and care of association property and, in the case of a timeshare association, for activities provided to or on behalf of members of the association,
(D) no part of the net earnings of such organization inures (other than by acquiring, constructing, or providing management, maintenance, and care of association property, and other than by a rebate of excess membership dues, fees, or assessments) to the benefit of any private shareholder or individual, and
(E) such organization elects (at such time and in such manner as the Secretary by regulations prescribes) to have this section apply for the taxable year.
(2) **Condominium management association** — The term “condominium management association” means any organization meeting the requirement of subparagraph (A) of paragraph (1) with respect to a condominium project substantially all of the units of which are used by individuals for residences.
(3) **Residential real estate management association** — The term “residential real estate management association” means any organization meeting the requirements of subparagraph (A) of paragraph (1) with respect to a subdivision, development, or similar area substantially all the lots or buildings of which may only be used by individuals for residences.
(4) **Timeshare association** — The term “timeshare association” means any organization (other than a condominium management association) meeting the requirement of subparagraph (A) of paragraph (1) if any member thereof holds a timeshare right to use, or a timeshare ownership interest in, real property constituting association property.
(5) **Association property** — The term “association property” means—
(A) property held by the organization,
(B) property commonly held by the members of the organization,
(C) property within the organization privately held by the members of the organization, and
(D) property owned by a governmental unit and used for the benefit of residents of such unit.
In the case of a timeshare association, such term includes property in which the timeshare association, or members of the association, have rights arising out of recorded easements, covenants, or other recorded instruments to use property related to the timeshare project.
**(d) Homeowners association taxable income defined**
(1) **Taxable income defined** — For purposes of this section, the homeowners association taxable income of any organization for any taxable year is an amount equal to the excess (if any) of—
(A) the gross income for the taxable year (excluding any exempt function income), over
(B) the deductions allowed by this chapter which are directly connected with the production of the gross income (excluding exempt function income), computed with the modifications provided in paragraph (2).
(2) **Modifications** — For purposes of this subsection—
(A) there shall be allowed a specific deduction of $100,
(B) no net operating loss deduction shall be allowed under section 172, and
(C) no deduction shall be allowed under part VIII of subchapter B (relating to special deductions for corporations).
(3) **Exempt function income** — For purposes of this subsection, the term “exempt function income” means any amount received as membership dues, fees, or assessments from—
(A) owners of condominium housing units in the case of a condominium management association,
(B) owners of real property in the case of a residential real estate management association, or
(C) owners of timeshare rights to use, or timeshare ownership interests in, real property in the case of a timeshare association.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of deduction** In the case of a tenant-stockholder (as defined in subsection (b)(2)), there shall be allowed as a deduction amounts (not otherwise deductible) paid or accrued to a cooperative housing corporation within the taxable year, but only to the extent that such amounts represent the tenant-stockholder’s proportionate share of—
(1) the real estate taxes allowable as a deduction to the corporation under section 164 which are paid or incurred by the corporation on the houses or apartment building and on the land on which such houses (or building) are situated, or
(2) the interest allowable as a deduction to the corporation under section 163 which is paid or incurred by the corporation on its indebtedness contracted—
(A) in the acquisition, construction, alteration, rehabilitation, or maintenance of the houses or apartment building, or
(B) in the acquisition of the land on which the houses (or apartment building) are situated.
**(b) Definitions** For purposes of this section—
(1) **Cooperative housing corporation** — The term “cooperative housing corporation” means a corporation—
(A) having one and only one class of stock outstanding,
(B) each of the stockholders of which is entitled, solely by reason of his ownership of stock in the corporation, to occupy for dwelling purposes a house, or an apartment in a building, owned or leased by such corporation,
(C) no stockholder of which is entitled (either conditionally or unconditionally) to receive any distribution not out of earnings and profits of the corporation except on a complete or partial liquidation of the corporation, and
(D) meeting 1 or more of the following requirements for the taxable year in which the taxes and interest described in subsection (a) are paid or incurred
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Corporations in general** A tax is hereby imposed for each taxable year on the taxable income of every corporation.
**(b) Amount of tax** The amount of the tax imposed by subsection (a) shall be 21 percent of taxable income.
**(c) Exceptions** Subsection (a) shall not apply to a corporation subject to a tax imposed by—
(1) section 594 (relating to mutual savings banks conducting life insurance business),
(2) subchapter L (sec. 801 and following, relating to insurance companies), or
(3) subchapter M (sec. 851 and following, relating to regulated investment companies and real estate investment trusts).
**(d) Foreign corporations** In the case of a foreign corporation, the taxes imposed by subsection (a) and section 55 shall apply only as provided by section 882.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements applicable to real estate investment trusts** The provisions of this part (other than subsection (d) of this section and subsection (g) of section 856) shall not apply to a real estate investment trust for a taxable year unless—
(1) the deduction for dividends paid during the taxable year (as defined in section 561, but determined without regard to capital gains dividends) equals or exceeds—
(A) the sum of—
(i) 90 percent of the real estate investment trust taxable income for the taxable year (determined without regard to the deduction for dividends paid (as defined in section 561) and by excluding any net capital gain); and
(ii) 90 percent of the excess of the net income from foreclosure property over the tax imposed on such income by subsection (b)(4)(A); minus
(B) any excess noncash income (as determined under subsection (e)); and
(2) either—
(A) the provisions of this part apply to the real estate investment trust for all taxable years beginning after February 28, 1986, or
(B) as of the close of the taxable year, the real estate investment trust has no earnings and profits accumulated in any non-REIT year.
For purposes of the preceding sentence, the term “non-REIT year” means any taxable year to which the provisions of this part did not apply with respect to the entity. The Secretary may waive the requirements of paragraph (1) for any taxable year if the real estate investment trust establishes to the satisfaction of the Secretary that it was unable to meet such requirements by reason of distributions previously made to meet the requirements of section 4981.
**(b) Method of taxation of real estate investment trusts and holders of shares or certificates of beneficial interest**
(1) **Imposition of tax on real estate invest
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Limitation** The total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer’s taxable income from sources without the United States (but not in excess of the taxpayer’s entire taxable income) bears to his entire taxable income for the same taxable year.
**(b) Taxable income for purpose of computing limitation**
(1) **Personal exemptions** — For purposes of subsection (a), the taxable income in the case of an individual, estate, or trust shall be computed without any deduction for personal exemptions under section 151 or 642(b).
(2) **Capital gains** — For purposes of this section—
(A) *In general* — Taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets only to the extent of foreign source capital gain net income.
(B) *Special rules where capital gain rate differential* — In the case of any taxable year for which there is a capital gain rate differential—
(i) in lieu of applying subparagraph (A), the taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets only in an amount equal to foreign source capital gain net income reduced by the rate differential portion of foreign source net capital gain,
(ii) the entire taxable income shall include gain from the sale or exchange of capital assets only in an amount equal to capital gain net income reduced by the rate differential portion of net capital gain, and
(iii) for purposes of determining taxable income from sources outside the United States, any net capital loss (and any amount which is a short-term capital loss under section 1212(a)) from sources outside the United States to
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Federal law — U.S. Code and appendices · legal_authorities
The following codification of existing rules and customs pertaining to the display and use of the flag of the United States of America is established for the use of such civilians or civilian groups or organizations as may not be required to conform with regulations promulgated by one or more executive departments of the Government of the United States. The flag of the United States for the purpose of this chapter shall be defined according to sections 1 and 2 of this title and Executive Order 10834 issued pursuant thereto.
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Federal law — U.S. Code and appendices · legal_authorities
Page 1730
TITLE 26—INTERNAL REVENUE CODE
§ 528
and to carrybacks from such years, see section 475(a) of
Pub. L. 98–369, set out as a note under section 21 of this
title.
Pub. L. 98–369, div. A, title VII, § 722(c), July 18, 1984,
98 Stat. 973, provided that the amendment made by
that section is effective for taxable years beginning
after Dec. 31, 1981.
EFFECTIVE DATE OF 1981 AMENDMENT
Pub. L. 97–34, title I, § 128(b), Aug. 13, 1981, 95 Stat. 203,
provided that: ‘‘The amendments made by this section
[amending this section] shall apply to taxable years be-
ginning after December 31, 1981.’’
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 301(b)(6) of Pub. L. 95–600 ap-
plicable to taxable years beginning after Dec. 31, 1978,
see section 301(c) of Pub. L. 95–600, set out as a note
under section 11 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION
CAMPAIGN CONTRIBUTIONS; COLLATERAL
Pub. L. 95–502, title III, § 302(b), Oct. 21, 1978, 92 Stat.
1703, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
‘‘(1) The amendment made by subsection (a) [amend-
ing this section] shall apply to taxable years beginning
after December 31, 1974, except that notwithstanding
any other provision of law to the contrary, no amounts
held at the date of enactment of this bill [Oct. 21, 1978]
by an organization described in section 527(e)(1) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] in
escrow, in separate accounts for the payment of Fed-
eral taxes, or in any other fund which are proceeds de-
scribed in section 527(c)(3)(D) of such Code may be used,
directly or indirectly, to make a contribution or ex-
penditure (as defined in section 301(e) and (f) of the
Federal Election Campaign Act of 1971; 2 U.S.C. 431[(e)
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 528
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