GerryF
Posts: 3
Posts: 3
Posted:
Our Ohio HOA receives partial reimbursement from the city for services not provided to our private drive. Trash collection, specifically. Is this considered exempt or non-exempt income in Section 528 / Form 1120-H?
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City Reimbursement for Services Not Provided
Started by GerryF • 4 replies • 220 views
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ElleN (Idaho)
Posts: 4,405
Posts: 4,405
Posted:
I would research the following:
Subtract the partial reimbursement from the total annual bill for these city services. Take the net amount and count it as a utility expense. The latter is exempt.
Subtract the partial reimbursement from the total annual bill for these city services. Take the net amount and count it as a utility expense. The latter is exempt.
ElleN (Idaho)
Posts: 4,405
Posts: 4,405
Posted:
Quote:
Posted By ElleN on 05/02/2024 2:37 PM
I would research the following:
Subtract the partial reimbursement from the total annual bill for these city services. Take the net amount and count it as a utility expense. The latter is exempt.
I would research the following:
Subtract the partial reimbursement from the total annual bill for these city services. Take the net amount and count it as a utility expense. The latter is exempt.
TimB4 (Virginia)
Posts: 20,986
Posts: 20,986
Posted:
In my opinion, the money received would be non-exempt income, as it did not come from assessments.
There will be other opinions.
Your board will have to make the choice.
The treasurer, who signs the 1120-H, will have to decide if they are comfortable signing it or not.
There will be other opinions.
Your board will have to make the choice.
The treasurer, who signs the 1120-H, will have to decide if they are comfortable signing it or not.
DeanJ (Ohio)
Posts: 1,789
Posts: 1,789
Posted:
Most cities in Ohio are funded by municipal income taxes and your HOA doesn’t pay municipal income tax. So ai don’t think it’s a refund of taxes paid and is non-exempt.
That said, I would treat it as exempt income.
That said, I would treat it as exempt income.
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