Do postage and clerical supplies count towards the 90% test for IRS Form 1120-H?

Started by LauraR2 • 3 replies • 1860 views

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LauraR2 (West Virginia)
Posts: 41

Posted:

Do postage and clerical supplies count towards the 90% test for IRS Form 1120-H? All postage and clerical supplies were used in communicating with members. Thanks!

RogerB (Colorado)
Posts: 5,067

Posted:

Of course Laura. Most HOAs spend 100% on HOA related expenses. What doesn't apply is money spent "outside the HOA". An example might be funds spent to improve an entrance which is not owned by the HOA.

LauraR2 (West Virginia)
Posts: 41

Posted:

Thanks- what about taxes and corporate license fees? The instructions on the irs publication are a little vague.

LauraR2 (West Virginia)
Posts: 41

Posted:

And what about IRS interest and late fees? Can they be counted towards the 90%? (Can you tell we don't have our act together?)

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