Source: https://www.charitableplanning.com/library/documents/497988
Timestamp: 2018-05-24 11:48:02
Document Index: 118084841

Matched Legal Cases: ['§528', '§2101', '§301', '§403', '§701', '§105', '§966', '§966', '§966', '§966', '§966', '§966', '§966', '§966', '§966', '§301', '§403', '§701', '§966', '§105', '§403', '§701', '§2101']

Section 528: Certain homeowners associations
§528. Certain homeowners associations
(c) Homeowners association defined
(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
(4) Timeshare association
(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.
(d) Homeowners association 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—
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.
(Added Pub. L. 94–455, title XXI, §2101(a), Oct. 4, 1976, 90 Stat. 1897; amended Pub. L. 95–600, title III, §301(b)(7), title IV, §403(c)(2), title VII, §701(n)(1), Nov. 6, 1978, 92 Stat. 2821, 2868, 2907; Pub. L. 96–605, title I, §105(a), Dec. 28, 1980, 94 Stat. 3523; Pub. L. 105–34, title IX, §966(a)–(d), Aug. 5, 1997, 111 Stat. 894, 895.)
1997—Subsec. (b). Pub. L. 105–34, §966(d), which directed amendment of subsec. (b) by inserting before the period "(32 percent of such income in the case of a timeshare association)", was executed by making the insertion before the period at end to reflect the probable intent of Congress.
Subsec. (c)(1). Pub. L. 105–34, §966(a)(1)(A), substituted ", a residential real estate management association, or a timeshare association" for "or a residential real estate management association" in introductory provisions.
Subsec. (c)(1)(B)(iii). Pub. L. 105–34, §966(a)(1)(B), added cl. (iii).
Subsec. (c)(1)(C). Pub. L. 105–34, §966(a)(1)(C), inserted before comma at end "and, in the case of a timeshare association, for activities provided to or on behalf of members of the association".
Subsec. (c)(4). Pub. L. 105–34, §966(a)(2), added par. (4). Former par. (4) redesignated (5).
Subsec. (c)(5). Pub. L. 105–34, §966(c), inserted concluding provisions "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."
Pub. L. 105–34, §966(a)(2), redesignated par. (4) as (5).
Subsec. (d)(3)(C). Pub. L. 105–34, §966(b), added subpar. (C).
1980—Subsec. (b). Pub. L. 96–605 substituted provision that all income of a homeowners association be taxed at a rate of 30 per cent for provision that all income of a homeowners association be taxed a sum computed by multiplying the homeowners association taxable income by the highest rate of tax specified in section 11(b) of this title and struck out provision providing for alternative tax in case of capital gains.
1978—Subsec. (b)(1). Pub. L. 95–600, §301(b)(7), substituted "Such tax shall be computed by multiplying the homeowners association taxable income by the highest rate of tax specified in section 11(b)" for "Such tax shall consist of a normal tax and a surtax computed as provided in section 11 as though the homeowners association were a corporation and as though the homeowners association taxable income were the taxable income referred to in section 11" and struck out provision that for purposes of this subsection, the surtax exemption provided by section 11(d) not be allowed.
Subsec. (b)(2)(B). Pub. L. 95–600, §403(c)(2), substituted provision related to amount being determined according to section 1201(a) for provision requiring an amount of 30 percent.
Subsec. (c)(2). Pub. L. 95–600, §701(n)(1), substituted "by individuals for residences" for "as residences".
Pub. L. 105–34, title IX, §966(e), Aug. 5, 1997, 111 Stat. 895, provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1996."
Pub. L. 96–605, title I, §105(b), Dec. 28, 1980, 94 Stat. 3523, provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1980."
Amendment by section 301(b)(7) of Pub. L. 95–600 applicable 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.
Pub. L. 95–600, title IV, §403(d)(3), Nov. 6, 1978, 92 Stat. 2869, provided that: "The amendments made by paragraphs (2), (3), and (4) of subsection (c) [amending this section and sections 857 and 904 of this title] shall take effect on the date of the enactment of this Act [Nov. 6, 1978]."
Pub. L. 95–600, title VII, §701(n)(2), Nov. 6, 1978, 92 Stat. 2907, provided that: "The amendment made by paragraph (1) [amending this section] shall apply to taxable years beginning after December 31, 1973."
Pub. L. 94–455, title XXI, §2101(e), Oct. 4, 1976, 90 Stat. 1899, provided that: "Except as provided in subsection (f)(2) [set out as a note under section 216 of this title], the amendments made by this section [enacting this section and amending sections 216 and 6012 of this title] shall apply to taxable years beginning after December 31, 1973."