GregM14
(South Carolina)
Posts:53
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| 01/07/2021 3:49 PM |
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How do you dispose of surplus HOA property?
I'm a bit torn on this. Clearly, keeping it for our personal use wouldn't be right, so we don't do that. I have thought about giving it away, but think that posting it on the community Facebook page would get complaints from people wondering why I am not selling it (I am not inviting strangers to my home so I can sell HOA property for $10). So, I've taken to the idea that disposing of it in my trash can is the best solution.
Going forward, I am encouraging that we rent rather than purchase property so we don't have to deal with the disposal question.
Wondering how others deal with disposing of surplus HOA property. |
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MarkM19
(Texas)
Posts:716
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| 01/07/2021 4:13 PM |
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Greg,
I understand your problem but I would strongly recommend against renting any type of HOA needs. Renting is usually for people that are not able to afford to purchase.
I think donating it to either a Family Crisis center or Rehab center is an option. If none are available I would recommend Goodwill as a last option. If this is done I would get them to provide a tax receipt not for Tax purposes but for Board protection to document where the asset was donated. |
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MelissaP1
(Alabama)
Posts:9862
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| 01/07/2021 4:42 PM |
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| If it was purchased by HOA funds, then why charge any money? It's owned by the owners. They paid for it. So I would say the owners are first come first serve or pick a number if they want it. It's paid for property is it not? Selling would mean profit. |
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Former HOA President |
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CathyA3
(Ohio)
Posts:1484
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| 01/08/2021 5:41 AM |
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| What kind of property are you talking about? Surplus supplies purchased for an event? Or a piece of land? My answer would be different depnding... |
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SheliaH
(Indiana)
Posts:3670
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| 01/08/2021 9:24 AM |
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| What Cathy said. |
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JohnC46
(South Carolina)
Posts:10366
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| 01/08/2021 11:01 AM |
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Posted By CathyA3 on 01/08/2021 5:41 AM
What kind of property are you talking about? Surplus supplies purchased for an event? Or a piece of land? My answer would be different depnding...
I agree. |
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GregM14
(South Carolina)
Posts:53
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| 01/09/2021 10:49 AM |
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Well, since I referred to throwing in the trash, I clearly wasn't referring to real estate.
I'm talking about low value stuff that doesn't have much value. Stuff that fits in a trash can. Maybe less than $100 value per item or set of items.
I'm really not asking what to do with our stuff, I'm more asking what other board members have done with their surplus HOA property. |
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MelissaP1
(Alabama)
Posts:9862
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| 01/09/2021 11:10 AM |
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The HOA owns it correct? So then it belongs to the owners. So if someone wants it they can have it. It's paid for. No use in selling it off. That only looks like "profit" on the books.
We had some extra stuff when cleaning out the clubhouse. So I ended up with a few things like picture, Christmas décor, and a small table. Also we had some pool chairs available since getting new pool furniture etc... It was first come first serve if you wanted it. Most people didn't but made it available for free.
I like to compare it to if you buy an Xbox for your family. Do you now sell it to one of your kids when you buy a new one? No. It's already paid for. Selling it to a stranger, that is different. That is profit. Subject to possible taxation. |
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Former HOA President |
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SueW6
(Michigan)
Posts:799
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| 01/09/2021 11:57 AM |
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| If it’s less than $100 then sell it off at a garage sale and put the proceeds into petty cash. |
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MarkM19
(Texas)
Posts:716
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| 01/09/2021 12:08 PM |
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Greg,
So you have gotten all kind of flavors of the same drink. The only thing I would add is that documentation is something that you can never get to much of and that is why I think taking it to a Donation Site is the easiest and clean way to dispose and document. I can see someone down the road saying you were selling HOA assets and pocketing the money. We all have that person in our HOA all they need is a violation letter from the HOA to make them go on the attack. |
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JohnC46
(South Carolina)
Posts:10366
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| 01/09/2021 3:09 PM |
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Posted By MarkM19 on 01/09/2021 12:08 PM
Greg,
So you have gotten all kind of flavors of the same drink. The only thing I would add is that documentation is something that you can never get to much of and that is why I think taking it to a Donation Site is the easiest and clean way to dispose and document. I can see someone down the road saying you were selling HOA assets and pocketing the money. We all have that person in our HOA all they need is a violation letter from the HOA to make them go on the attack.
Good points. Ankle biters are out there. |
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