Cohousing-L Mailing List: Donations, was Financial Assistance

[Linda Hobbet (coho]

I live in Village Hearth in North Carolina. We were told by our 
accountant, who is experienced in HOA accounting, that we should pay 
federal taxes on donations to the community more than $500 per year from 
any person. To me, this doesn't seem right (though probably correct 
legally) regarding donations from owners. To me, if I donate toward an 
improvement it is no more than  family member contributing to upgrading 
the home the family lives in.

Would it be possible to get a definitive answer to this from lawyers in 
cohousing? If the answer is that it is taxable, could we get an 
appropriate amendment written specific to cohousing that we can lobby for?

I expect it would require a description of cohousing that would 
differentiate it from the usual condominium complex. As a start I 
propose communities of 50 or fewer units with decisions made by 100% or 
near 100% (suggest a number) agreement by owners.

Linda Hobbet

On 3/4/2023 1:00 PM, Kelly Bachman wrote:
> We have raised funds by donations instead of dues for upgrades including a
> heat pump to replace a gas furnace in the common house, an EV charging
> station, and a hot tub. This helps keep dues affordable.

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VillageHearthCohousing.com
706-202-7178
coho [at] lindahobbet.com