HOA Finances > HOA Forum

Home

HOA Discussions

HOATalk.com Preview

Service Directory

Member Login

Help

Wednesday, January 07, 2009

Our Sponsors:
(Advertising Information:
HOATalk is viewed over 100,000 times/month!)

Banking Solutions for Community Associations (NCB) (National Bank)

Finance repair projects or deposit reserve accounts with NCB, an industry leader with over 25 years experience. Learn More…

HOA Websites by Community123.com (National Community Website Provider)

We built HOATalk and we'll build your community website for free! Click here for information on a free trial website.

IHG Insurance (National Insurance Provider)

Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability.

Community Associations Network (National HOA Reference Library)

News, articles and blogs about condos/HOA's

Unanswered

Active Topics

Forums

Forums > Homeowner Association > HOA Discussions

Subject: HOA Finances

Prev Next

You are not authorized to post a reply.

Author

Messages

TracyJ
(Florida)

Posts:1

05/13/2006 11:38 AM
I attended our HOA meeting this morning and someone had informed the members that a HOA can not make more than $50 in interest a year. Is that true? We have a surplus of $$ that we would like to put into a Money Market Account or something similar to save for fence replacements, and other emergencies. Are you aware of such laws? Thank you .

RogerB
(Colorado)

Posts:3724

05/13/2006 3:35 PM
Tracy, there is no such law. Your Board should be investing; I suggest you review posts on this topic posted on this board. We suggest CDs for reserve funds and a combination of money market and checking for operating funds with a minimum held in checking and transferring from MM as needed. Some HOAs make thousands of dollars from investments.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

WilliamM1
(Florida)

Posts:2

06/03/2006 2:47 PM
We have $10,000 in reserve funds, we placed it in to 4 $2,500 CDs that have differant expiration dates. 90 days, 180, 270 and 365. As each mutures we roll them over to a one year cd so that we always have access to $2,500 with in 90 days. We also roll over the intrest. Bill

SwanB
(Washington)

Posts:194

06/03/2006 10:08 PM
We are a nonprofit filed with the state and have the ability as a nonprofit to file federal income tax as such. However since our expenses generally outweigh our income we are able to file our income tax as a corporate tax entity without paying taxes. Unfortunately we are now starting to accrue too much interest income and are having to address how we file the current year's income tax. Managing an HOA takes the skill of wearing alot of different hats at the same time, doesn't it?

RogerB
(Colorado)

Posts:3724

06/04/2006 8:31 AM
Managing an HOA takes the skill of wearing alot of different hats at the same time, doesn't it? So true Swan! Many HOAs use IRS form 1120-H for federal tax. Basically you pay 30% on the interest income after duducting previous years taxes, any financial management fees, and a standard $100 deduction.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

RogerB
(Colorado)

Posts:3724

06/04/2006 8:35 AM
Swan I forgot to add the deduction for a tax preperation fee. I usually don't think of this because it is a free service to all of our clients.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

You are not authorized to post a reply.

Forums > Homeowner Association > HOA Discussions > HOA Finances

General Legal Notice: The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com. Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship. Readers should not act upon this information without seeking professional counsel. HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional. HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice: (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.
Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)