IRS Form 1120-H

Started by LucindaL • 4 replies • 584 views

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LucindaL (Delaware)
Posts: 3

Posted:

We took over our HOA last March and are still working on figuring out all the required responsibilities. At the time, the Developer who was responsible for the HOA didn't do any filings, or meetings, or budgets, he just took our money and used it.

Since we are a very small development, we weren't quite sure if we needed to complete the IRS Form 1120-H. We read the instructions and it seems like we should, however I just wanted to find out from other HOA's if that is a requirement.

Thank you for your time.

BillH10 (Texas)
Posts: 1,217

Posted:

Yes, and it is so simple there is no need to pay $300, $500, or $1,000 to a CPA to file the document if your association income is from assessments, late payment and similar charges, and bank account interest. You will likely owe zero dollars.

If you are uncomfortable with preparing the form in house, pay a CPA to do it for you the first year and follow what they have done in subsequent years.

LucindaL (Delaware)
Posts: 3

Posted:

Thank you so much. That was very helpful.

RogerJ1 (Texas)
Posts: 550

Posted:

Side question please: I assume there is no requirement for a 1120-H if a POA is organized as a 501-c4 and is filing a 990-N?

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By RogerJ1 on 02/05/2020 9:53 AM
Side question please: I assume there is no requirement for a 1120-H if a POA is organized as a 501-c4 and is filing a 990-N?

There is no requirement that HOAs file form 1120-H. Associations are required just like most other entities to file a tax return of some type. The standard corporate tax form is 1120, and some associations file that. The 1120-H form provides some advantages to associations that get most of their income from assessments (dues) so most choose to file that. Assuming you are eligible to use a different return, I think that would be adequate.

You might want to check with the IRS or tax professional just to be sure.

Escaped former treasurer and director of a self managed association.

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