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Can I take a loss from a prior year (1120H) and carry it into the year I am doing that has a small gain?

Forum|Forum|3 years ago
September 17, 2022
2 replies
42 views

I am new on the 1120H form. If I understand correctly the federal and nys forms for the HOA can not be efiled and have to be mail ins.

My main issue is over the past numerous years they've has losses. But in the year I am doing there is a small gain. ( They collected a little more money than what some repairs were to cost) Can the loss from 2020 be carried over into 2021 to wipe that gain out? And if so how? The gain was around 2700 and it is showing a federal tax liability of around 800 and state around 200.

I've been doing taxes for over 30 years but this is my first HOA (1120H).

Thank you in advance for any and ALL help you can offer me.

ProSeries Professional

This topic has been closed for replies.

Best answer by dd4vols

I do about ten 1120-H for HOA's. For many years. You are making this WAAAAAAY too hard.

Put the dues received on Line B. Put the total expenditures on LIne C AND Line D.

There is no need at all to have a list of expenditures. Unless, you did something like play the Lotto and win, etc. all expenditures that meet the 90% test __which is usually all of them are then on line D.

There is NO profit/loss unless you do non-HOA transactions. Well, except the $100 exemption, which was mentioned above by @Terry53029 So you end up with a $100 net loss.

T

Terry53029

Intuit Community Champion

Note that dues are exempt income. See this link, and study it carefully: https://www.law.cornell.edu/uscode/text/26/528

shf1957Author

Level 6

When I put the income down on line B for exempt income Then below in the other section put their deductions.. it comes up with a loss of all the deductions. Example: HOA collected 81000. and their deductions were 79000. I put down the 81000 and broke down all their deductions and it comes out with a taxable income of a Loss of 79000. I have to be doing something wrong.

T

Terry53029

Intuit Community Champion

You normally put expenses in line C if expenses meet 90% requirement. here are instructions: https://www.irs.gov/pub/irs-pdf/i1120h.pdf

You are probably listing expenses in other expenses which is incorrect for most HOA. That is for expenses directly connected with other (not exempt income) income

Taxes-by-Rocky

Level 7

Generally, "B to D" for exempt function activities....and "Gross Income and Deductions" for taxable activities. As noted by the other commentator, you need to review the Instructions to Form 1120-H in detail. From your comments, you might start by determining if any of your gross income is other than exempt function income (or tax-exempt interest) and subject to taxation.....then you can determine where to put the deductions (above or below). Hope that helps.

shf1957Author

Level 6

It's condo's and owned by the individuals that live there. They pay dues to cover the expenses of repairs and maintenance...and when they need something big they re assess the new amount that would be due and divide it between them all.. like sealing the parking lot. They do have a bank account with a small amount of reserve in it for a new roof they will need in a few years. I know the interest is taxable..

dd4vols

Answer

Intuit Community Champion

I do about ten 1120-H for HOA's. For many years. You are making this WAAAAAAY too hard.

Put the dues received on Line B. Put the total expenditures on LIne C AND Line D.

There is no need at all to have a list of expenditures. Unless, you did something like play the Lotto and win, etc. all expenditures that meet the 90% test __which is usually all of them are then on line D.

There is NO profit/loss unless you do non-HOA transactions. Well, except the $100 exemption, which was mentioned above by @Terry53029 So you end up with a $100 net loss.

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