1120-H question

[duanecpa]

A condo association purchased a ladder some years ago and the cost was included on line C - Total expenditures made for purposes described in 90% expenditure test.

In 2009 they sold the ladder to a third party - need guidance on whether any of the 2009 sale needs to be reported as a taxable event.

Thank you.

[spencer]

The association

A condo association purchased a ladder some years ago and the cost was included on line C - Total expenditures made for purposes described in 90% expenditure test.

In 2009 they sold the ladder to a third party - need guidance on whether any of the 2009 sale needs to be reported as a taxable event.

Thank you.

has no basis in the ladder. I'd put it on Sch C, Part 1, Line 6 other income

[duanecpa]

1120-h

Thank you for the information - however, the 1120H does not have a Schedule C and on the 1120_h - Other Income is line 7 -

[RitaB]

Report the Sale

Report the sale on Sch D, and yes it would wind up in the taxable income. (Line 5 of the 1120-H)