The Internal Revenue Service (“IRS”) excludes from an association’s taxable income those amounts which are properly kept and used for capital contributions. In several significant Revenue Rulings, the IRS considered special assessments for major repairs and replacements to be capital contributions in addition to capital contributions to reserve funds from annual assessments. For assessments toGo to Resource
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So far this winter, the Denver area has experienced mostly unseasonably warm weather, which has spared us from the usual flurry of snowflakes and frozen pipe claims. But as we all know, Colorado weather is a fickle thing and a cold snap can strike at any time. When the temperatures plummet, a common (and oftenGo to Resource
Although document amendments lead to desirable results, boards frequently refuse to utilize this tool based on commonly held preconceived notions and popular myths about the process. This article addresses the top 10 myths and misunderstandings pertaining to document amendments. Myth #1: If a declaration contains a mortgagee approval requirement, it is impossible to amend. Fact: Go to Resource
Board Members Guide attorney regarding “wish list” and culture of the Association. Build grass root support within community by owner involvement, education and buy-in. Thoroughly review and understand proposed amendments. Owners Become educated regarding proposed amendments. Provide feedback and input on drafts, surveys, etc. Provide consents necessary for approval. Attorney Guide Board ofGo to Resource
Governing documents are often overlooked until a particular issue arises that brings shortcomings, inconsistencies, or problems to light. When this occurs, it may be too late to amend the governing documents to properly address the issue at hand. For this reason, associations should periodically review their governing documents to identify potential areas of concern whichGo to Resource