Get 2 months of free community web site hosting from Community123.com!
Tuesday, October 22, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Treas. Reg. Sec 1.528-6 Expenditure test.
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
LeslieH
(Utah)

Posts:3


08/27/2006 1:45 PM  
We are a small HOA, 14 units. We increased our fees to allow a small amount to be placed in a fund for future extensive repairs, including roofs. Exclusive of the increase our projected expenses will be about 82% of our regular fees. The regs say 90% has to make up the total expenditures. Do we have to reduce our fees and reserve fund?
RogerB
(Colorado)

Posts:5067


08/27/2006 8:23 PM  
No. The total expenditure includes funds placed into a reserve fund. Actually putting on 18% into reserves is probably too low. Usually suggest approximately 30% depending on what future capital expenditures may be needed.
RogerB
(Colorado)

Posts:5067


08/27/2006 8:23 PM  
No. The total expenditure includes funds placed into a reserve fund. Actually putting only 18% into reserves is probably too low. Usually suggest approximately 30% depending on what future capital expenditures may be needed.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Treas. Reg. Sec 1.528-6 Expenditure test.



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







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.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement