I have just been recruited to serve on my board and have found out something about our income streams.
It appears that because of the IRS 80-20 rule our cooperative actually has to forego income, sometimes in excess of 20,000 dollars a year, that we could otherwise collect from two store we rent space to.
Actually collecting this income would have significant consequences in loss of shareholders ability to deduct real estate taxes and morgage interest from income taxes as well as the treatment of sales proceeds for those who sell.
I have also been told this maybe more common than I would like to think.
Therefore, how many of your buildings face the same situation? How many of you also actually have to leave monies uncollected?
It seems the stores we rent to benefit in lower rents at the expense of the cooperative and all its shareholders.
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