March 2023 | Page 18

By JOHN MCLAIN

Most Charbonneau residents are painfully aware of income taxes that come due

MCLAIN in April of each year . We prepare a federal paperwork bundle as well as a state paperwork bundle and send them via U . S . mail or perhaps digital bundles online . Charbonneau is also

home to many nonprofit corporations or associations that also must file with state and federal agencies . The paperwork bundles are very simple if the nonprofit revenues are small ( e . g Charbonneau Arts Association , Charbonneau Mens Club ), and much more complex if revenues are large , such as the Charbonneau Country Club ( CCC is a nonprofit homeowners association , HOA ).

I was appointed and then elected to serve on the CCC board of directors a few years ago . As I became familiar with the inner workings of CCC , it came as a surprise to me that our HOA does pay income taxes , as do many other large HOAs throughout Oregon and the USA . I had assumed that because HOAs were classified as a nonprofit by the IRS and Oregon , it didn ’ t pay income

taxes on any revenues received . There are some stringent rules that allow some revenues to go untaxed while other revenues are subject to income tax calculations and extra paperwork . I ’ m not an accountant , so these are over-simplified examples based on my general business background and experiences .

User fees for HOA amenities - Nonprofit HOAs often maintain amenities for the use of its resident members and guests ( e . g . pools , RV parking , marina , fitness center , tennis and pickleball ).

� Free for residents : In some cases , the HOA board determines that the amenities are FREE to residents and their guests , as is the case throughout Charbonneau ’ s neighborhood pools , and HOA neighborhood parks ( e . g . Edith Green Park ). The operating and reserve costs are included in the annual dues

assessments to all residents , regardless of their use of the amenity .

� Resident user fees : In other cases , the HOA board determines that the use of the amenities should require a “ userfee ” for access , as is the case with CCC fitness center and the RV storage lot , which do not include non-residents .

� Non-resident user fees : In some cases , when the number of residents using an amenity is smaller than the full capacity of the amenity , the HOA board can allow non-residents to pay an annual user fee , usually much higher than the resident fee , to use the amenity , which helps pay for operating costs and reserve requirements .

In the first two examples ( i . e . free to residents , and user-fees to residents ) the revenues and costs are not subject to income taxes . However , the third

example does require a calculation to determine if there is any applicable income tax owed . The Charbonneau marina and the tennis club are examples of non-resident and resident users sharing the use of an amenity . The numbers in the example below are made so I can do most of the math in my head ( or use my iPhone ) and are not reflective of actual fees and costs that you would find in the CCC tax return .

The revenue math is easy , but the calculation of costs

See FINANCIAL / A19

By CANDY FERGUSON

I was born and raised on the East Coast , most of the time living in the Garden State ( New

FERGUSON Jersey ) and

therefore the spring was always beautiful . But after getting married ,

I found myself living in San Diego ( not a bad place to live , at least in the 70s ), but it was hard to find the spring season there , or any of the other seasons for that matter .

Fortunately for me , when I retired in 2016 , I moved to this treasured community , Charbonneau , to be near my daughter , but also to return to a landscape full of soaring trees , acres of green grass and the eye-popping beauty of a colorful spring . Welcome to spring in Charbonneau !

Many of my friends in Solo Sisters are fabulous gardeners

and they dedicate themselves to creating beautiful yards , patios and courtyards each year as the warm weather arrives . I envy them for their love of digging in the dirt , finding the perfect plant for each place in their gardens and for the feeling of fulfillment they get as they watch their gardens grow . That ’ s not me ! I shocked a lot of friends when I replaced real flowers with fake flowers in my kitchen window box . I even have flowers for all four seasons in that window box ! But I do appreciate seeing Cricket ’ s beautiful yard ,

Karen ’ s colorful courtyard and Ellen ’ s equally colorful hanging baskets . You Solo Sisters know what you ’ re doing and maybe we should have a seminar this spring for those of us who could use some help . As you walk the quiet streets of our community , be sure to stop and smell the roses . But not in my yard , because they ’ re fake !

Of course , spring is also a time for cleaning out our garages and closets and , since most of us have downsized in order to fit into our homes , it is an annual right of passage to open the trash and recycle

bins and get down to business . This is where I shine ! And I ’ m good at it ! Have you cleaned out your garage and closets lately ? Try it — you ’ ll like the feeling of being organized and having new spaces to fill .

As spring approaches , Solo Sisters , Charbonneau ’ s single women ’ s group , is finishing up its annual enrollment period . We are a small but fun club and hopefully more women will continue to join us throughout the year . If you would like more information regarding Solo Sisters , please contact Deanna Morgan at deannamorgan @ gmail . com .