Tag Archives: capital

Association Taxation and Reserves

The Internal Revenue Service (“IRS”) excludes from an association’s taxable income those amounts which are properly kept and used for capital contributions.  In several significant Revenue Rulings, the IRS considered special assessments for major repairs and replacements to be capital contributions in addition to capital contributions to reserve funds from annual assessments.

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Turnaround Case Study: Venetia Country Club

In just nine months, an association in Largo, Fla., went from more than $350,000 in delinquencies–and near-collapse–to having reserves in the bank. Here, we speak with board member Scott Simms about how Venetia righted its sinking ship by getting non-recourse capital from LM Funding in exchange for giving LM the right to keep interest and late…

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HOA Bank Sold to PNC

Pittsburgh-based PNC bank buys RBC for $3.45 billion

In a move sure to negatively affect Homeowners Associations, Condominium Associations and Property Owner Associations and the professional association management companies who use their services, Pittsburgh-based PNC Financial Services Group is buying Raleigh-based RBC Bank in a deal worth $3.45 billion.  The deal was announced early Monday after media reports over the weekend said PNC Financial had topped Winston-Salem based BB&T in the bidding for RBC.     

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