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………….


Related Articles

HOA Takeover Case in Las Vegas Provides Lessons for Florida Community Association Elections

Community association boards control the purse strings of the communities they govern, and as such they have been long-standing targets

Why Your HOA Board Should Start Preparing the Next Annual Budget Now

When it comes to the annual budget for your homeowners association, it can feel cumbersome to understand and plan. It

SIDE STREETS: Today is a good day to meet your neighbors

Did you know today is a holiday? Well, it’s more of a wannabe holiday for neighborhoods. A social media group,