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Subject: Taxes, form 1120-H
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Author Messages
MichelleB
(Oregon)

Posts:1


02/07/2006 12:36 PM  
Hi,

We're a relatively new HOA in Oregon & I am trying to get through this tax form. We are really small, only 27 houses, so we don't collect that much dues. All of our $ that we collect goes for maintaining one little piece of common property that we've turned into a park. We don't have any taxable interest, no other gross income, no nothing, just the dues (about $7837) for our fiscal year which lasts Sept. 15 through Sept. 14 of the following year. We have no deductions - I put 0 for lines 9 through 17.

Then, for line 19, I have -100.00 (which is line 17 minus line 18). Line 20 is -30.00 (30% of line 19). So our total tax is -70.00 (on line 22, subtract lilne 21 from line 20). Can I just put 0.00?

We did not spend 90% expenditure test in 2005 because we need those funds for 2006 until we collect dues again. We won't get taxed for this extra $, right?

Michelle

RogerB
(Colorado)

Posts:5067


02/07/2006 1:23 PM  
MichelleB, you are correct. When gross income - items 1 through 8 (often only item 2. Taxable interest) is not over the $100.00 deductable there is no taxable income. It is that simple!

RogerB

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