Tax Form 1120H - It details some of the basic information of the homeowners association. These benefits, in effect, allow the association to exclude exempt function income (defined later) from its gross income. While this document ostensibly simplifies tax filing in some respects, it also limits the association's ability to deduct certain expenses and may result in higher tax liabilities. Tax liability & payment section: To benefit from specific tax advantages, a homeowners association files this form as its income tax return. The image above is the top section of the form.
While this document ostensibly simplifies tax filing in some respects, it also limits the association's ability to deduct certain expenses and may result in higher tax liabilities. The image above is the top section of the form. Tax liability & payment section: These benefits, in effect, allow the association to exclude exempt function income (defined later) from its gross income. It details some of the basic information of the homeowners association. To benefit from specific tax advantages, a homeowners association files this form as its income tax return.