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.
Assocations must file!
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.
1. If it isn't an FHA loan being used to purchase a unit, chances are the buyer is an investor. Because over 80% of buyers are now using FHA loans, the remaining buyers are usually investors who cannot use an FHA loan to purchase. An...
In today’s economy, many associations are being forced to look for ways to trim costs and increase income.
Here are a few ways to save: