Association wants to change filing status to save on taxes

Q: Our condominium association paid 35 percent in federal income taxes last year even though we are a small association. The tax was on a capital gain we earned for a small investment that paid handsomely. Two accountants confirmed that we are liable because we are classified as a nonprofit association. Can our association abandon our nonprofit status so that we can save dollars in income taxes?

Mark Pearlstein

January 13, 2012