Cohousing-L Mailing List: Re: Replacement Reserve Analysis

[Sharon Villines (sharon]

On Aug 26, 2007, at 3:08 PM, David Heimann wrote:

>         I'm not aware of the need to pay taxes on reserve funds, so if you
> find something out otherwise that's applicable outside of California,
> could you please let me (and the list) know?

The taxes will be on the interest earned on Reserve funds. At some  
point in preparation for replacing the roof and all the siding in the  
same year, we are projected to have half a million dollars in our  
Reserves. The interest on that will be considerable. That's the tax  
bite.

Bu Apparently this varies according to how you file your taxes. It's  
apparently part of your overall tax status which is why you need to  
consult experts.

Sharon
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Sharon Villines
Takoma Village Cohousing
Washington DC
http://www.takomavillage.org