1120 H - Home Owner's Association

Technical topics regarding tax preparation.
#1
philly  
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HOA installs a new fence for $6,950 on the HOA property. Do I include the full amount of the fence on 1120H line C-total expenditures made for the purpose of the 90% test or do I compute the depreciation based upon the capitalized amount for the fence and then include the depreciation on line C of the 1120 H.
 

#2
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The Office
Take a peak at Treas. Reg. §1.528-6

Ask yourself, is the fence a qualifying expenditure, and if yes, how do I report a qualifying expenditure on the tax return.
 

#3
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Standard HOA? Does the HOA have a right to do with the fence as they please without any vote from its members, including disposal of the fence? You referred to HOA property, but that does NOT mean it fails to be common property.
 

#4
philly  
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The members vote on all acquisitions, repairs & capital improvements including any disposal of property.
 

#5
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philly wrote:The members vote on all acquisitions, repairs & capital improvements including any disposal of property.


Sounds like non-depreciable common property, to me, which would be fully recorded as an expense and as part of the 90% test.
 


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