This question was submitted by Marilyn in Michigan
We are a small condo association of 36 units that happens to be in one multi-level building. We have small common areas on two floors and a small fitness room with five machines on the third floor. This room is to be updated this year and two of the machines will be replaced.
A recumbent bike that needs some repair was scheduled to be removed but some residents, who regularly use this machine offered to pay for the cost to repair. Since the bike is association property, the association would pay for the repairs.
My question is, how would the reimbursement by the resident be recorded in the association's financial records? Since this reimbursement is for the maintenance of association property, is it considered as exempt function income?
Thank you for your input.