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Business Condominium Association tax filing

Asked over 3 years ago - Florida

It is my understanding that a condominum association can file an annual 1120H so as to avoid any tax on exempt income. However, can a business condominum association owned by individuals for their business also file 1120H or is the 1120H reserved for residential associations? Any assistance would be greatly appreciated.

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Richard H. Breit

Reputation Level 6

Answered over 3 years ago. Business Attorney in Fort Lauderdale, FL.

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The H in 1120H stands for homeowners association. If you take a look at the back of the instructions, you will see they intend to exclude commercial condominiums. However, all is not lost. It is often better to file a regular 1120. The cpa's I deal with usually run numbers with both and pick whichever is lower but it ofter the 1120 which is lower. Remember the 1120H is at a fixed 30% rate.

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