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.
FL: Money File-Surviving the Condo Crisis
News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network