Tag Archives: form

Associations Using CPA’s: Is it Really Necessary?

Although homeowner associations are created as nonprofit corporations, this does not mean the associations do not engage in financial transactions or require the services of a certified public accountant (CPA). For example, it is common for an association’s governing documents to require a financial audit or review on an annual basis, and associations are required to file tax returns every year. Further examples of situations in which it may be beneficial to consult a CPA include:

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Tax Time

Assocations must file!

Tax Time   While the end of the year traditionally means a congested calendar and a lengthy to-do list for most people, Associations also face another important year-end activity:  preparing to file federal – and, in some cases, state-tax forms.

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Should Painting Be Included In The Reserve Study?

The question of including painting in reserves continues to arise, even 15 years after the matter should have been settled. To understand why, you need to know that this issue first arose from tax considerations,
not because of any budget, maintenance, or economic factors. Painting is one of the largest expenditures that most
condominium associations will incur. The primary purpose for establishing reserves is to assure funding is available for major repairs and replacements that do not occur on an annual basis. Consequently it is logical that it should be included in reserves because it is not an annual maintenance expense. For most associations painting will occur every 7 to 15 years.

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