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Alternatively, Form 1120-H, which can be filed under Section 528 of the IRC, has a higher tax rate but is quicker and less complicated. To qualify to use Form 1120-H, the association must claim at least 60% of its revenue from members, with 90% of expenses for operations and maintenance.
Form 1120 is used by C corporations while 1120-H is a tax form specifically designed for qualifying HOAs. What makes HOAs unique is the ability to file two different tax returns and the ability to change those forms each year. For that tax year the rules of each of the respective forms will govern the tax criteria.
A homeowners association makes the election to file Form 1120-H separately for each tax year in order to take advantage of certain tax benefits, and pay a flat tax rate on taxable income (30%, or 32% for timeshare associations).
A homeowners association files this form as its income tax return to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income from its gross income.
The 1120H, U.S. Income Tax return for a Homeowners Association, cannot be electronically filed. It can be generated for paper-filing by creating a corporate return, going to the first Other Forms tab, and selecting the H 1120-H Homeowners Associations screen.
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To complete a Form 1120-H, you need to provide the following information: Association information. Tax year. Name. ... Gross Income. Dividends. ... Deductions. Salaries and wages. ... Tax and Payments. Taxable income. ... Signature. Signature of officer. ... Paid Preparer's Information. Authorization for IRS to discuss return with preparer.
A homeowners association files Form 1120-H as its income tax return to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income (defined later) from its gross income.
HOAs have two forms to choose from \u2013 1120 and 1120-H. Form 1120 is used by C corporations while 1120-H is a tax form specifically designed for qualifying HOAs. What makes HOAs unique is the ability to file two different tax returns and the ability to change those forms each year.
A homeowners association files Form 1120-H as its income tax return to take advantage of certain tax benefits.
A homeowners association files this form as its income tax return to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income from its gross income.

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