Common questions about corporate homeowner's associations

Below, you'll find answers to frequently asked questions about homeowner's associations in Lacerte:

How do you generate Form 1120-H for a homeowner's association?

1. Go to Screen 54, HOA (1120-H) / Cooperative (1120-C).
2. Select the box labeled Homeowner's association (MANDATORY).
3. In the Type of association field, select an option from the dropdown menu.
4. Enter the Exempt Function Income.
5. Scroll down to the Deductions section and fill it out.
   • You only need to enter gross income if it's different from the input in other screens.

Forcing Form 1120-H When Lacerte is Optimizing Based on Tax Computation

Homeowners associations may optionally file on form 1120 or 1120-H, whichever produces the lowest tax.

According to page 2 of the 1120-H instructions:
A homeowners association should compare its total tax computed on Form 1120-H with its total tax computed on Form 1120, U.S. Corporation Income Tax Return. The association may file the form that results in the lowest tax.

Lacerte calculates the tax on both forms but only generates the form that produces the lowest tax. Additional entries may be required in screen 54 to ensure that the 1120-H results Lacerte used for comparison are accurate. To do that, I recommend forcing form 1120-H long enough to verify the form is correctly populated.

To force form 1120-H:

1. Go to Screen 54, Homeowners Association.
2. Enter 1 in the field 1=Force 1120-H, 2=force 1120 in the Miscellaneous Information section at the top of the screen.

Related topics:

• Corporate Forms that Cannot be Filed Electronically (E-File)