1 2017 Department of the Treasury Internal Revenue Service Instructions for form 1120-H . Income Tax Return for Homeowners Associations Section references are to the Internal dealings with the association. TAS Otherwise, the association can go Revenue Code unless otherwise noted. can help the association if: to to place an A problem is causing financial order and have forms mailed to it. The Future Developments difficulty for the business. association should receive its order For the latest information about The association is facing immediate within 10 business days.
2 Developments related to form threat of adverse action. 1120-H and its separate Instructions , such as legislation enacted after they The association has tried General Instructions repeatedly to contact the IRS but no were published, go to one has responded, or the IRS hasn't Purpose of form Form1120H. responded by the date promised. A homeowners association files form 1120-H as its income tax return to What's New The TAS tax toolkit at take advantage of certain tax benefits. can Address change for filing returns. These benefits, in effect, allow the help the corporation understand these The filing address for association's association to exclude exempt rights.
3 Located in Georgia, Illinois, Kentucky, function income (defined later) from Michigan, and Wisconsin has TAS has offices in every state, the its gross income. changed. See Where To File, later. District of Columbia, and Puerto Rico. Increase in penalty for failure to Local advocates' numbers are in their Electing To File form file. For returns required to be filed local directories and at 1120-H . after December 31, 2016, the The A homeowners association elects to minimum penalty for failure to file a corporation can also call TAS at take advantage of the tax benefits return that is over 60 days late has 1-877-777-4778.
4 Provided by section 528 by filing a increased to the smaller of the tax due properly completed form 1120-H . or $210. See Late filing of return, later. TAS also works to resolve The election is made separately for large-scale or systemic problems that each tax year and generally must be Photographs of affect many taxpayers. If the made by the due date, including association knows of one of these Missing Children broad issues, please report it to TAS. extensions, of the income tax return. The Internal Revenue Service is a through the Systemic Advocacy This extension does not extend the proud partner with the National Center Management System at time to pay the tax.
5 For Missing & Exploited Children sams. Once form 1120-H is filed, the (NCMEC). Photographs of missing association cannot revoke its election children selected by the Center may For more information, go to for that year unless the IRS consents. appear in Instructions on pages that The association may request IRS. would otherwise be blank. You can consent by filing a ruling request. A. help bring these children home by How To Get Forms user fee must be paid with all ruling looking at the photographs and calling and Publications requests. For more information on 1-800-THE-LOST (1-800-843-5678) if ruling requests, see Rev.
6 Proc. you recognize a child. Internet. You can access the IRS. website 24 hours a day, 7 days a 2017 -1, 2017 -1 1 (or any successor), available at The Taxpayer Advocate week, at to: irb/ 2017 -01_ Download forms, Instructions , and Service publications; If the association does not elect to The Taxpayer Advocate Service Order IRS products online; use form 1120-H , it must file the (TAS) is an independent Research your tax questions online; applicable income tax return, for organization within the IRS that helps Search publications online by topic example, form 1120, taxpayers and protects taxpayer or keyword.
7 And Corporation Income Tax Return. rights. TAS's job is to ensure that Sign up to receive local and every taxpayer is treated fairly and A homeowners association should national tax news by email. knows and understands their rights compare its total tax computed on under the Taxpayer Bill of Rights. Tax forms and publications. The form 1120-H with its total tax association can download or print all computed on form 1120. The As a taxpayer, the association has of the forms and publications it may association may file the form that rights that the IRS must abide by in its need on results in the lowest tax.
8 Dec 21, 2017 Cat. No. 24935G. Automatic 12-month extension to condominium management Net operating loss deduction make election. If the homeowners associations and residential real (section 172). association fails to make the estate management associations. Deductions under Part VIII of regulatory election to be treated as a To qualify as a homeowners subchapter B (special deductions for homeowners association, it can get association, the following must apply. corporations). an automatic 12-month extension to At least 60% of the association's If facilities are used (or personnel make the section 528 election, gross income for the tax year must are employed) for both exempt and provided corrective action is taken consist of exempt function income nonexempt purposes, see within 12 months of the due date (defined later).
9 Regulations section (including extension) of the return. At least 90% of the association's See Regulations section expenses for the tax year must Exempt function income. Exempt for more information. consist of expenses to acquire, build, function income consists of manage, maintain, or care for its membership dues, fees, or Tax rate. The taxable income of a assessments from homeowners association that files its property, and, in the case of a timeshare association, for activities (a) owners of condominium housing tax return on form 1120-H is taxed at units, (b) owners of real property in a flat rate of 30% for condominium provided to, or on behalf of, members of the timeshare association.
10 The case of a residential real estate management associations and management association, or (c). residential real estate associations. No private shareholder or individual can profit from the association's net owners of timeshare rights to use, or The tax rate for timeshare timeshare ownership interests in, real associations is 32%. These rates earnings except by acquiring, building, managing, or caring for property in the case of a timeshare apply to both ordinary income and association. This income must come capital gains. association property or by a rebate of excess membership dues, fees, or from the members as owners, not as If the association is tax exempt assessments.