|Re: tax and legal issues for common house usage||<– Date –> <– Thread –>|
|From: Larry Miller (larry.millercharter.net)|
|Date: Sun, 3 Aug 2008 11:34:29 -0700 (PDT)|
Rosemary said, "We have had some interest in charging for use of common facilities such as payment for events in the common house, lodging in the common house, and use of laundry facilities. How have other communities handled the accounting for these types of income for tax purposes? " We currently charge for laundry and treat it as taxable. However, we then expense the maintenance and warranty costs, and replacement reserves on the washers and driers as well as estimated gas and electric usage and we usually don't end up with a profit. As far as charging for guest rooms or common house use, when we looked into it here in California, it appeared that we would be subject to all kinds of licensing and regulatory issues. One way around that is not to charge, but to have "suggested donations." In California, donations are not taxable, but you would need to check in your state. In general, if you go the charging route, I believe you can estimate the deductible expenses by looking at the total common house expenses and using a fraction of them corresponding to the fraction of the usage that has been rented out. To be certain, you would need professional advice. Larry Miller Oak Creek Commons
tax and legal issues for common house usage astromezzo, August 2 2008
- Re: tax and legal issues for common house usage Rob Sandelin, August 3 2008
- Re: tax and legal issues for common house usage Larry Miller, August 3 2008
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