|Re: Reserve Studies||<– Date –> <– Thread –>|
|From: Sharon Villines (sharonsharonvillines.com)|
|Date: Fri, 30 Dec 2011 05:27:10 -0800 (PST)|
On 30 Dec 2011, at 6:04 AM, Diana Carroll wrote: > Where can I find the IRS rules on reserve uses? I don't know but you could peruse the IRS website which is pretty substantial. Or call an IRS office. > And more generally why does it matter? HOA income is generally tax exempt. It depends on the nature of the income and the size of your reserves. As that fund grows, interest earnings grow. Those earnings are taxable under certain circumstances. The IRS doesn't want associations hiding income in reserve accounts. > I'm also curious what people are doing with their reserve funds,,,keep them > in a savings account? CDs? Invest in mutual funds? Laddered CDs, which means CDs with varying maturity dates so they don't have to be redeemed at a penalty. Some associations are discussing putting some reserves in investments like mutual funds. I don't know if any actually have. The practice is to invest at the lowest possible risk — insured if possible. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org
- Re: Reserve Studies, (continued)
- Re: Reserve Studies Sharon Villines, December 30 2011
- Re: Reserve Studies R Philip Dowds, December 30 2011
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