My HOA never filed a tax return in 40 years. It's simple, straight forward if qualified for form 1120-H but since they won't qualify for late tax returns and would have to file form 1120 for missed years (how many we shall see). There will be a tax liability with form 1120 since a chunk of the expenses is for 15-year depreciable property and some funds were transferred to the reserve account. I still have to break the news to the board I am concerned that the condo owners will be liable for the final tax bill since the HOA does not have the funds. Maybe this is a moot point since either the owners pay directly or the HOA needs to make a special assessment. I would suggest to only file form 1120-H for the current year and then see if the IRS is catching up on the non-filing. Any words of advise?
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HOA not incorporated - never filed tax returns
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This site has some helpful blogs and templates: https://hoatax.com/condo-association-tax-return/
I believe the 1120-H has a higher potential tax rate than 1120.
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Originally posted by jmcdtax View PostThis site has some helpful blogs and templates: https://hoatax.com/condo-association-tax-return/
I believe the 1120-H has a higher potential tax rate than 1120.
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Originally posted by Gretel View Post
Thanks, I have been to that site. I am also familiar to a degree with qualifications for form 1120-H and my HOA has only tax exempt income. This issues arising probably will need to be addressed with an attorney.Always cite your source for support to defend your opinion
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