Fact: There is no immunity or protection against The Law of Scoreboards.
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|User Info||Another Piece of the Housing ScrewJob; entered at 2023-01-23 09:37:20|
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.