When an association takes legal ownership of a Condo unit, how should it be handled on the financial statements? I am told it does not appear on the financials because it is really owned by the remaining owners. It does not get capitalized. Is this accurate? What if the owners then rent it out and receive rental income and incur rental expense? Do the owners also then pay the assessment on the unit and it becomes part of the expenses also or does the base number of units decrease in the budget and the owners still end up paying the assessment without a corresponding expense? None of this is covered in the docs and our accountant even seems to think it is unchartered territory.
