Anyone have condo. assoc. tax experience?

[Unregistered]

I have a client that has an NOL for the current year.

First - Can they carryback the loss? Someone just told me that you can only carry them forward with a condo assoc.

Secondly - I am looking at last years return and they have an adjustment for IRC Section 277 expenses. Please explain.

[Matt Sova]

What return?

I have a couple condo assoc. and file 1120H for them. Are they filing 1120's?

[Unregistered]

Hi Matt... yes they are electing to file as a Corporation. It was my understanding that you can not have NOLs when you file an 1120H but I thought you were allowed NOLs if you elect to file an 1120. The property manager who is responsible for many Associations said "I didnt think you could carry them back.. only forward". I just want to make sure that I am right. I also noticed that last years tax return has an adjustment for IRC 277 and I am not exactly sure how that is calculated.

[Matt Sova]

Hmmmm

All mine file the 1120H so I cannot help you here.

Sorry

[Bees Knees]

If you file an 1120, normal C corporation rules apply. You carry it back 2 years and forward 20. However, for any year you do file 1120-H as a homeowners association, you can't use an NOL carryback or carryforward for that year. Nor can you carry an NOL from an 1120-H year forward or back to any other year.