The Non-Profit Income Tax Knowledge Group has answered the questions about how a share in a reserve fund of an Owners’ Association and an amount of money that is temporarily deposited in a escrow account of a notary are treated in the legal restoration box 3.
Cause
Following the introduction of the Box 3 Restoration Act and the Box 3 Bridging Act with regard to Chapter 5 of the Income Tax Act 2001 (IB Act 2001), also known as box 3, various questions arise regarding the qualification of assets , such as the right to a share in the reserve fund of an Owners’ Association (VvE).
Since the introduction of the box 3 Restoration of Rights Act, the fixed return depends on the type of asset (divided into the categories of bank balances, other assets and debts). Each asset category has its own fixed return percentage. There are assets that cannot directly be regarded as bank deposits, but have a comparable return as bank deposits.
Ask
How is a share in a reserve fund of a homeowners’ association taken into account under the Box 3 Restoration Act?
Answer
The share in a reserve fund of a homeowners’ association is regarded as other assets under the Box 3 Restoration of Rights Act. This also applies if an owner remains liable for his share (partially or otherwise). The qualification of the funds saved privately by the owner to cover his debt depends on the type of property.
The position also includes a further consideration. The position on the treatment of the notary’s third-party account in the legal restoration box 3 can be found here.