My wife is the manager of our gated community. There is an HOA that is unassociated with management or ownership of the park. They are a secretive and non-effectual group. There has been a push to change the administrative positions so that there might be a more open and effective group. Because they work with management, my wife has been trying to help with this.
Seeing the writing on the wall, the president, vice president and treasurer have vacated their positions. There is a group of people ready to step in, but the potential president has been asked to provide her SS# so that she may be added to the HOA bank account. She has balked at this because she is worried that any money that is collected by the HOA will be reported as income and she will owe taxes on it.
I realize that each HOA will be different and different states might have different laws but, generally speaking, is that something she should worry about or could potentially be an issue for her?
Have her set up a three way call with the bank and your wife, and simply ask the bank to clarify the fact that the account is set up with the HOA as the owner, and no K1s are generated, thus no income is generated.
My son has been president of his HOA for 20 years and there has been no tax implications.
[hijack] He became president because he wanted to paint his house red and that was against the rules. So he became president and managed to change the rules. It was so long ago that the house is blue again, but he has not been able to find anyone to replace him as president.[/hijack]