1120-H question

Started by CarolB3 • 1 replies • 1409 views

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CarolB3 (North Carolina)
Posts: 1

Posted:

I am a new treasurer of a small 15 home HOA in transition from the developer. The 1120-H was filed last year (2006) and I assume that is the form I need to file this year. My question is this. We had $5569 in income (all member dues) and $4343 in expenses (maintenence, utilities). This does not meet the 90% expenditure test. Does this mean we cannot file the 1120-H? I sure could use some guidance.

RogerB (Colorado)
Posts: 5,067

Posted:

CarolB,
Yes you can use 1120-H. The 90% applies to expenses related to expenses associated with your Association. It is not 90% of total income. And remember the taxable income is only on items outside the association income, such as interest from CDs.

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