US District Court Rules that Prior Recorded Condominium Lien takes Priority Over Federal Tax Lien to the Extent of the Amount Stated in the Lien Notice

In Yarmouth Commons Ass’n v Norwood, et al., 299 F. Supp.3d 862 (E.D. Mich., 2017), the United States District Court for the Eastern District of Michigan held that a prior recorded condominium lien had priority over a federal tax lien but only to the extent of the amount stated in the lien notice. Facts The case involves a condominium unit […]

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IRS Revenue Ruling 70-604 and MCL 450.2541(2)(b): The Value of Expert Advice

Many individuals and corporations, including community associations, are currently preparing their tax returns.  For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604.  A proper election under Revenue Ruling 70-604 can be used to reduce an association’s taxable income by deducting from taxable income any excess assessments […]

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Taxes in Your Michigan Condominium or Homeowners' Association: Is Your Association Current with the IRS?

As April 15th approaches, many Michigan residents are reviewing various sources of gross income, tax credits and tax deductions in order to prepare individual or joint income tax returns.  In addition to personal income taxes, newer directors may be unaware that their condominium or homeowners’ association is also required to file federal income taxes on an annual basis.  For the […]

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