RobL1 (Texas)
Posts: 1
Posts: 1
Posted:
MY Texas association is proposing to Borrow from Reserves to fund a previously unidentified capital expenditure. However, the Board also is proposing that it has no intention of repaying the Reserve Fund since the Fund is adequately funded.
This HOA has previously filed as a non-profit corporation using form 1120 and has accounted for Reserve contributions under IRC section 118. Would failure to repay a Reserve Fund loan pose any signficant Tax Risk?
This HOA has previously filed as a non-profit corporation using form 1120 and has accounted for Reserve contributions under IRC section 118. Would failure to repay a Reserve Fund loan pose any signficant Tax Risk?