Looking for Alternatives: Featured Article in Condo Media

Condominiums Can Boost Income Without Raising Fees

Condo MediaHeather Cozby, CPA was quoted in two different articles in the July 2014 issue of Condo Media magazine.

Click on the magazine cover to the right to read the cover article by Nena Groskind, “Looking for Alternatives: Condominiums Can Boost Income Without Raising Fees”, which starts on page 28.

Heather is quoted on page 33 of this article:

“Many boards want to cut their fees immediately after negotiating a lucrative contract before they’re received the first payment. [Instead], set aside money to cover taxes first, then update [your] reserve study, and use the extra cash to boost [your] reserves. When the reserves are where they need to be, then the board can think about reducing fees or holding them level.”

She is also featured on page 24 in the “Asked & Answered” column in the piece entitled “Borrowing from Reserves: Think Twice Before Doing It”. Here are some of her thoughts:

“Borrowing from your reserves may have tax consequences. Reserves are supposed to be used only for capital repair and replacement projects. Using those funds for other purposes could make your reserves, which are otherwise tax-exempt, taxable. There are tax-planning strategies that can avoid that liability, but tax consequences or not, borrowing from the reserves is a poor financial management practice. And there are better ways for you to address the community’s funding needs. One option is simply to forego the association’s regular annual reserve contribution…. You might also consider creating a “rainy-day” fund, separate from the reserves, to cover unexpected operating expenses.”

For more information, visit the Resources page on our website.

Click below to access the article.

Condo Media July 2014

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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