HOA tax return

Technical topics regarding tax preparation.
#1
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I have never handled a HOA tax return before. Today I received an inquiry to prepare one for 2019. The Form 1120-H is only one page and looks to be simple. I also consider myself a quick learner and I think I can read and fully comprehend the form instruction swiftly.

I would like to know if there is anything I should consider before I decide to take the job?
 

#2
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It's pretty simple.

Read IRC Sec 528 and the related regs so you know what questions to ask, then prepare the form in accordance with the instructions.

1120-H currently can't be efiled, so be prepared to FedEx the final return or have the client pick it up from the office. Build paper return processing into the fee.
 

#3
Doug M  
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You can file via 1120H or regular 1120. You can switch from year to year. Whichever gets you the result needed.
 

#4
JR1  
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It must be filed by due date, there are no extensions, or you're now in 1120 land.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#5
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Thank you.

This is a question for California professionals.

Is the balance sheet of the HOA required if the annual income is only about $60,000 in the California information returns? I think they are a California exempted organization and Form 199 is required.
 

#6
philly  
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If you can switch year to year between 1120 and 1120H do you have to make a formal election on the returns that are being filed ?
 

#7
JR1  
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The election is to file the 1120-H.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#8
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philly wrote:If you can switch year to year between 1120 and 1120H do you have to make a formal election on the returns that are being filed ?


No, filing the 1120-H IS the election.

Watch the various tests required to file 1120-H in lieu of 1120.
 

#9
ELKCPA  
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PPC Homeowners Association manuals- Tax Section should tell you all you need to know. I've been doing CIRA's (HOAs) for many years and this is my Bible.
 


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