Are Form 1120 C Associations 2023-2024

Who am I? My name's Brett. First, let me count some interesting facts: Did you know that in the United States, there are over 330,000 community associations? And did you also know that 93 percent of these associations are either homeowner or condo associations, also known as HOAs? These HOAs are made up of over 26 million housing units in the United States, accommodating a staggering 68 million residents. This means that 68 million residents across the country are governed by an HOA in one way or another. - Another interesting fact is that all of these HOAs have one thing in common: they must file a tax return of some sort. There are basically three types of returns that HOAs need to file. The first one is called Form 990, which is specifically for exempt organizations. It's important to note that qualifying as a tax-exempt non-profit recognized by the IRS is quite rare, as you need to apply and obtain IRS approval. Many HOAs mistakenly believe that they are exempt from filing a tax return or paying taxes, but that's not the case. - The second type of tax return that an HOA may be required to file, if it's not a non-profit or exempt organization, is Form 1120. This form treats your HOA as a business, and its preparation can be complex and costly. Hiring a professional to handle this return is often necessary. - Fortunately, there is a third type of tax return that an HOA may opt to file: Form 1120 H. This form is exclusively designed for homeowners associations and is simpler to complete for most HOAs. However, in order to qualify for this form, your HOA must meet the IRS definition of an HOA. The majority of HOAs in the United States do qualify for this return. -...