My statement of not "supposed to be" reliable source of income was taken out of context, since I established a comparison between "interest rates" and "flip taxes" are ot being "reliable."

However, your accountant has to account for monies that flow in and out of your operating account into reserves, etc by way of your income statement.

Your statement, "Instead, think of flip tax revenue as extra money that can go to reducing the amount shareholders have to be charged for a new roof/boiler/elevator" is not truly accurate either. The money that you receive through flip tax is accounted by way of your income statement as part of a "flip tax line item." The surplus in your income statement is then converted to "Reserves" for your "Capital Expenses."

However, should your taxes be higher than expected or your oerating expenses suffer an unexpected increase, your "reserves" need to be move to "patch the hole." Then, it's up to the board to determine if to access for the deficit or just use the reserves without inconveniencing your shareholders.

And as Lily Tomblin used to say (Watch out!, I'm dating myself), THIS IS THE TRUTH, PRUURRR!

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