LisaB11 (Florida)
Posts: 5
Posts: 5
Posted:
Who chooses for the Association as to which type of tax return is filed the 1120 or 1120H? Is there a required membership vote in selecting which form to file annually?
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Tax Filing of 1120H
Started by LisaB11 • 1 replies • 1677 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Lisa, the Bylaws often assign the Treasurer this responsibility. Otherwise, the Board can assign this duty.
IMO most HOAs should use 1120-H with the major outside income being interest received from reserve accounts. Form 1120 is used whan an HOA does not qualify to use 1120H or when they may save of taxes when significant income (I would estimate over $10,000 to $15,000) is other than assessment income. Examples of this could be amenities owned by the HOA and open for separate participation. Such amenities income could be golf course fees, swimming fees, airport fees, and other fees.
For 1120H we provide free guidance to the Treasurer of each of the HOAs we manage. None use 1120 but if the situation warranted considering using 1120 we would recommend using a CPA specializing in taxes.
IMO most HOAs should use 1120-H with the major outside income being interest received from reserve accounts. Form 1120 is used whan an HOA does not qualify to use 1120H or when they may save of taxes when significant income (I would estimate over $10,000 to $15,000) is other than assessment income. Examples of this could be amenities owned by the HOA and open for separate participation. Such amenities income could be golf course fees, swimming fees, airport fees, and other fees.
For 1120H we provide free guidance to the Treasurer of each of the HOAs we manage. None use 1120 but if the situation warranted considering using 1120 we would recommend using a CPA specializing in taxes.
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