Condominium Financial Taxes

Condo Owners Question Developer’s Handling of Tax Bills

F.B. from Massachusetts writes: Dear Mister Condo, We moved into a newly built condo in MA last year. We have not received a town tax bill and the town said that the builder filed the master deed too late for the town to assess the individual properties. The town said that the bills will be ready next year. Is the builder liable for retroactive taxes or are the condo owners? Also, if the builder pays…

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Common Fees Condominium Damage Taxes

Tax Implications of Converting Fire Damaged Condo to Investment Property

(Editor’s Note – J.S. originally wrote to us in January of 2013. You can read the original post at J.S. from Pennsylvania writes: Dear Mister Condo, Thank you for your explanation on the condo fees from my previous post. Here is an update. It has been 15 months since the condo fire in Wyncote, PA and very little has been done in the building of the 55-unit condominium building. They have secured a builder…

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Condominium Financial Reserve Fund Taxes

How to Handle Tax on HOA Reserve Fund Interest

Anonymous from New Haven County writes: Dear Mister Condo, Federal tax law specifies that Reserve funds and operating expenses cannot be co-mingled.  Does that apply even when we don’t make enough in interest income? Mister Condo replies: I know better than to tackle an accounting question without checking in with one of my expert friends. I reached out to my friend Sam Tomasetti, CPA of Tomasetti, Kulas & Company, P.C. for his advice. Here’s what he had…

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Condominium Financial Governance Taxes

Condo Interest Tax Filing Query

A.B. from New Haven County writes: Dear Mister Condo, If our 6 unit condo does not have enough interest income to require us to pay taxes, do we still have to file? Mister Condo replies: A.B., not having to pay taxes does not exclude one from having to file taxes. That being said, I assume your association as a non-profit corporation does, in fact, file a tax statement every year. Completing the interest income portion…

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