Cohousing-L Mailing List: tax and legal issues for common house usage

[astromezzo (astromezzo]

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?   
Since it's not directly related to the maintenance of common  
property, I know it's not exempt income even if it comes from members  
of our community, but I know we can deduct expenses against this  
income in order to reduce our taxable income.

But then how, for example, do you calculate the expenses to deduct  
for use of the common house for an hour in a manner that satisfies  
the IRS?  Also, does charging for overnight guests in a common house  
bring up licensing and/or insurance issues with being a hotel or  
boarding house?

-Rosemary
Rocky Hill Cohousing
Florence, MA