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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 11829
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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are there any exemptions to filing a 1120H or 1120 providing

Customer Question

are there any exemptions to filing a 1120H or 1120 providing that the entity is not exempt under 501 (c)(4)
Submitted: 3 years ago.
Category: Tax
Expert:  Lane replied 3 years ago.

Lane :


Lane :

A homeowners’ association that is not ex­empt under section 501(c)(4) and that is a con­dominium management association, a residential real estate management association, or a timeshare association generally may elect under the provisions of Code section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income.

Lane :

Let me know and can go further here... the answer really depends on what type of organization you are ... (and if the answer is that you are now a for-profit, there is no exemption for not filing the 1120) ... DO please let me know ...

Lane :


Expert:  Lane replied 3 years ago.


... just checking back in here, as I never saw you come into the chat.

Let me know, and we can dig in further here.

Customer: replied 3 years ago.

Is there any minimum revenue exemption which would allow an association exemption from filing ?

Expert:  Lane replied 3 years ago.

ON the 1120-H there is never a REQUIREMENT to file.

From the purpose of form section from IRS:

A homeowners association files Form
1120-H as its income tax return to
take advantage of certain tax benefits.
These benefits, in effect, allow the
association to exclude exempt
function income (defined later) from
its gross income.

This is a return that is filed in order to elect certain treatment.

So, here the exemption is by choice, and further, would be needed only when at least some exempt function is there in that year. But again this is not a required form.

ON the 1120 itself, no there are no exemptions UNLESS you elect to file the 1120-H

See this from IRS:

Who Must File

Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return.

Who must file (for 1120)

See this:

Purposeof form (1120-H)

and this:

Hope this helps

Expert:  Lane replied 3 years ago.

I'm just following up with you to see how everything is going. Did my answer help?

Let me know,
Expert:  Lane replied 3 years ago.

... just thought I'd check back in one more time.

Let me know what you thought about that last answer and we can go from there.

I'm certain about the answer, but depending on your objective, maybe I can still help?

Let me know,