1120 or 1120-H

Hi,

I have some questions about filling tax form 1120

We are a small HOA, in year 2007, we have about $500 bank interest. After calulate, I believe 1120 will have lower tax than 1120-H

But I have question here.

On 1120-H, the membership due and maintain cost will not be actively invloved in the tax calc. Only appear to determine if you qualify to use 1120-H

On 1120, does that need to be included? like put membership due on income section column 1a, and maintain on deductible section column 14. Also some other expense, like postage, I can not include on 1120-H, can I put them on 1120 column 26 as business expense?

Is this correct? Thanks for your help.

The thing is the expense this year is more than membership due income.

so when use 1120-H, they don't care of this fact, and we need pay tax on the interest.

when use 1120, if my understanding above is correct, the interest is been deduct by the excess expense, so we will pay little to no tax at all.

Is there any other issue I ned to pay attention?