@Mike9241 wrote:
I take a different viewpoint. the IRS could argue that he got $X of taxable compensation and paid $X of non-deductible HOA fees, what is being done may even be in violation of the HOA rules and regulations and maybe even state law,
I agree. In Florida, and probably other states, directors and officers Of HOAs and condo associations cannot be compensated unless otherwise provided in the bylaws (by statute) and it is unusual for bylaws to provide for such compensation.
In the event a board member is compensated, however, it certainly is reasonable to presume that the IRS would consider the compensation to be taxable (most likely as miscellaneous income not subject to self-employment tax).
[in some ways, this could be viewed as COD income since the member of the association is obligated to pay the dues]
