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User Info Another Piece of the Housing ScrewJob; entered at 2023-01-23 09:37:20
Guerin
Posts: 145
Registered: 2021-09-26
@Forever_young

From an accounting perspective, putting funds in reserve typically has no P/L effect, it is just re-classing or transferring funds in balance sheet accounts (assets/liabilities), and would not usually carry negative tax implications.

If an association assesses and collects say $1000 a month for future repairs, they would not classify that money as revenue, it would be booked as a liability toward future repairs, with the liability reduced as funds are spent.
2023-01-23 09:37:20