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Prepare a Homeowner's Association return without optimization

Homeowner’s associations file Form 1120-H to take advantage of certain tax benefits. These benefits allow the association to exclude exempt function income and deductions from the determination of taxable income. If the association doesn't elect to use Form 1120-H, the association must file Form 1120, U.S. Corporation Income Tax Return (or other applicable income tax return).
Use the following procedures to prepare a Homeowner’s Association return when the taxpayer is electing to file Form 1120-H and doesn't want the application to compare the total tax calculated on Form 1120 with the total tax calculated on Form 1120-H and print the form that results in the lowest tax.
  1. Proforma add a new client with the entity type
    Homeowner’s Association
    .
  2. Depending on the condition, do 1 of the following:
    1. If this is a new client, select the
      General
       folder in the folders block, go to the
      1120
       tab, and enter the applicable information.
    2. If this was an existing client, select the
      General
       folder in the folders block, go to the
      1120
       tab, and review the information that was transferred from the prior-year client.
  3. Select the
    1120H
     folder in the folders block, go to the
    H
     tab, and complete the following information:
    • Total exempt function income:
        UltraTax CS transfers this amount to Form 1120-H, Line B.
    • Total expenditures made for purposes described in 90% expenditure test:
       UltraTax CS transfers this amount to Form 1120-H, Line C.
    • Association’s total expenditures for the tax year (Force):
       UltraTax CS transfers this amount to Form 1120-H, Line D.
  4. Enter any taxable income or deductions that aren't related to exempt function activities in the applicable Income or Deductions data sections of the H Screen.
  5. Select the
    Payments
     folder in the folders block, go to the
    PmtExt
     tab, and enter the applicable payment information.

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