Form 1120-H vs. Form 1120-pol 2023-2024

Okay, for this video, I want to go over a very simple tutorial on how to complete an 1120h tax return for a homeowners association. Homeowners associations are very prevalent in the U.S., with possibly close to 400,000 of them. Homeowners associations are organized as corporate entities under state law and are still required to file a tax return, even if they may not owe any taxes in many cases. In this example, I want to go over a very simple 1120h. I have a couple of pieces to work with here. I have the return itself and then I have a workbook in Excel for the homeowners association's financial statements for the year, including revenues and expenses. I also have a slide with some background information and the fact pattern that we will be working with. Let's start with the homeowners tax returns. Homeowners associations have three options for filing a tax return. The first option is to file a regular corporate tax return using Form 1120. This is a regular U.S. corporate income tax return for a domestic corporation. All income and expenses are reported, and corporate income taxes are paid on a net basis. Currently, the net tax rate in the U.S. for corporations is 21%. The second option is to file Form 1120h, which is a specific variant of Form 1120 for homeowners associations. Form 1120 has different variants for various industries, such as life insurance companies, property and casualty companies, and disks. Form 1128 is another option for homeowners associations. The third option is to file a non-profit or tax-exempt return using Form 990. If a homeowners association qualifies for tax-exempt status, it can apply for it under 501c4. While 501c3 is the most popular tax-exempt category for charities, 501c4 covers homeowners associations. If the homeowners association qualifies, it...