Home Owner Associations
Home Owner Associations
Electing 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.
This extension does not extend the
time to pay the tax.
Once Form 1120-H is filed, the
association cannot revoke its election
for that year unless the IRS consents.
The association may request IRS
consent by filing a ruling request. A
user fee must be paid with all ruling
requests. For more information on
ruling requests, see Rev. Proc.
2015-1, 2015-1 I.R.B. 1.
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.
A homeowners association should
compare its total tax computed on
Form 1120-H with its total tax
computed on Form 1120. The
association may file the form that
results in the lowest tax.