The number one concern of housing cooperatives is often federal tax law. Several years ago, the National Association of Housing Cooperatives (NAHC) successfully argued that co-ops be taxed under Subchapter T. This means that revenue earnings are not taxable.
However, housing cooperatives must still file Form 1120 like any other corporation. They must pay real estate taxes, as well as taxes on interest earned on reserves. If you believe these taxes or others are too high, there is a solution. You can initiate an administrative and legal procedure to reduce them.
The nationwide co-op tax appeal attorneys at Pentiuk, Couvreur & Kobiljak, P.C. can help. We will perform an initial case assessment and assist you throughout the appeals process.
Steps You Can Take
There are several steps you can take — in addition to an appeal — to protect the financial stability of your corporation. When you retain our services, we can explore these options with you. Depending upon your particular situation, they may include:
- Tax credit for energy efficiency improvements
- An application for federal grant money
- The treatment of reserve earnings as patronage income, which can be offset with depreciation
Another way to ensure the economic health of your co-op is to use your voting power. Become a force in the local and state political arena by inviting elected officials and candidates to speak to your membership. Encourage your members to vote at election time (but do not support specific candidates). This will go a long way to giving to your cooperative and may support lowering taxes.
Speak With Our Dedicated Property Tax Appeal Attorneys
Our lawyers deliver proven results in an efficient manner. To learn more about how our tax knowledge can benefit you and help lower your payments to the IRS, contact Pentiuk, Couvreur & Kobiljak, P.C. We serve clients nationwide from convenient office locations in Chicago and Detroit.