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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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Just became treasurer of condo association--have found that

Customer Question

Just became treasurer of condo association--have found that 1120 H not filed for a number of years--condo operates at a loss--under $12000 in revenue a year. Must I file
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
I am sorry if you expected differently...That is ONLY option to file 1120H - when the tax return timely filed.See instructionshttp://www.irs.gov/pub/irs-pdf/i1120h.pdfElecting To File Form 1120-H. A homeowners association elects to take advantage of the tax benefits provided by section 528 by filing a properly completed Form 1120-H. The election is made separately for each tax year and generally must be made by the due date, including extensions, of the income tax return....If the association does not elect to use Form 1120-H, it must file the applicable income tax return, for example, Form 1120, U.S. Corporation Income Tax Return.So far - you woudl be required to file form 1120 for all missing years.As the association generated losses - there woudl not be any corporate income tax liability - but be sure to verify if you correctly identified the loss.
Customer: replied 1 year ago.
That information is directly from the publication. However--the question is for 1120 and 1120 H if there is a threshold of revenue to even have to file at all?
Expert:  Lev replied 1 year ago.
Yes - correct - that is an extract from instructions.There is NO gross revenue threshold to use form 1120H - that is an option available when election is timely made.Otherwise ANY HOA - large or small - may elect to use 1120H .