Ancillary Income: the Good, the Bad, the Ugly
Most will agree that the best type of income for the owners is the income that they do not have to pay (outside income). That income of course reduces the assessments they pay to the association. Usually these types of income will be taxable. However, depending on the type of association and the type of tax return filed, the income can be offset with directly related expenses. Most often, the income net of related expenses for tax purposes will not be significant or will be offset with other types of income that run at a loss that year. If there is a taxable situation, generally the tax will be minimal. True, you say, but taxes are not something association owners want to pay. After all, this is the USA and we all do our best to avoid all taxes, right? To avoid is our right; to evade is against the law. Read the article………….
A recent Illinois appellate level case concerns the validity of a management agreement entered into by a condominium association. The
It has been a problem that man has battled since the dawn of time—controlling mold. It lurks in the corners