Cohousing-L Mailing List: Re: Replacement Reserve Analysis

[Oliveau (Oliveau]

In a message dated 8/26/2007 3:30:34 P.M. Eastern Daylight Time,  
heimann [at] theworld.com writes:

Hi  Harriet,

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?

Thanks,
David Heimann
JP  Cohousing



Our tax accountant (she's a CPA) tells us that Homeowners  Associations 
(HOAs) do not have to pay taxes on assessments.  Further,  as long as other 
income 
(fees, interest, rents, etc.) does not exceed a certain  percentage (I can't 
remember what that percentage is), HOAs pay no taxes on  other income.  If you 
fail the test (i.e. exceed the magic percentage) then  you are liable for 
corporate income taxes.
 
Hope that helps,
-Kevin Oliveau
Catoctin Creek Village



************************************** Get a sneak peek of the all-new AOL at 
http://discover.aol.com/memed/aolcom30tour