HOA Tax Return - Insurance Payout and Bank HOA/Fee Payments

We have a vacant unit in our building that had a major water leak and the Association collected a large sum of money from our insurance company. Since the unit is vacant, the owner is deceased and the bank is stalling the foreclosure, we simply put this into a separate account. We assume this belongs to the unit, but we are not sure.

We also collected a large sum of money from the bank foreclosing for past due HOA assessments.

My question is do we have to report the insurance payout on the association's tax return and is it tax-exempt? Also, the bank HOA payments are for that units HOA assessments, so those are exempt, right?

We will have a large number of incoming money and I want to be sure we file correctly.

The money from the insurance company I am assuming was for repairs for the water leak ... therefore, who paid for the repairs? I am betting if the HOA insurance paid the claim, the HOA paid. This money would then belong and is reimbursement to HOA regarding the water leak repairs and damage. If this scenario is true … it is reimbursement not income. Check your records regarding the repairs made for the water leak.

The money from bank for HOA assessments is no different than everyone else’s assessments paid.

I meant walls -> out. Usually units are from the paint on the walls outward to the outside of the building.