Are funds received from city for landscaping removal taxed?

Started by RonJ10 • 4 replies • 156 views

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RonJ10 (Georgia)
Posts: 3

Posted:

Our city (in Georgia) is installing a sidewalk and needed to remove HOA maintained plants, trees, fencing, lighting and irrigation. We received funds from the city as compensation for the items that were removed and we will use all of these funds to replace the items removed once the project is complete. Are these funds considered taxable income by the fed or state?

RonJ10 (Georgia)
Posts: 3

Posted:

Sorry for the double post. I don't see a way to delete this post so please use the other post to reply to this topic, thanks.

LetA (Nevada)
Posts: 2,679

Posted:

I don't believe so, best to check with your CPA.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Since those funds were not assessments, they would likely be counted as taxable income for 1120-H.

That said, I am not a CPA.

DeanJ
Posts: 1,786

Posted:

I don’t believe the funds are taxable. You didn’t sell anything. You were compensated for items the city damaged during the sidewalk installation.

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