Recreational Checking account in HOA

Started by BobT6 • 2 replies • 557 views

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BobT6 (New Jersey)
Posts: 1

Posted:

We have several recreational committees and at events we charge admission to cover mostly food, drink and we end up with small profit and over the years we have a couple thousand in our acct. We elected a new president and he closed the account and mixed it with the regular HOA account. So if we have a function we must put the money out of our pockets and get re-imbursed and this takes several weeks. Is there any law saying we can not have a separate checking account just for our functions and just report the finances to the board monthly?

Bob

TimB4 (Tennessee)
Posts: 21,061

Posted:

Is there a law? I doubt it.

Can't you have the Association write a check for you to give a vendor? A little more hassle, but it can be done.

BTW - that "profit" would be taxable income when filing IRS form 1120-H.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

What Tim said!

If you are not already paying taxes for some reason, I would find some way to NOT make money this way!

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