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Форма 1120-H Інструкція

Інструкція по формуванню 1120-H, U.S. Повернення податку на прибуток для власників

Реп. 2023

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  • Форма 1120-Х - Повернення податку на прибуток США для власників будинків
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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for  
Form 1120-H  
U.S. Income Tax Return for Homeowners Associations  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
TAS also works to resolve large-scale or systemic  
problems that affect many taxpayers. If the association  
knows of one of these broad issues, report it to TAS  
through the Systemic Advocacy Management System at  
Future Developments  
For the latest information about developments related to  
Form 1120-H and its separate instructions, such as  
legislation enacted after they were published, go to  
For more information, go to TaxpayerAdvocate.IRS.gov.  
How To Get Forms and Publications  
Internet. You can access the IRS website 24 hours a day,  
7 days a week, at IRS.gov to:  
What’s New  
Increase in penalty for failure to file. For tax returns  
required to be filed in 2024, the minimum penalty for  
failure to file a return that is over 60 days late has been  
increased to the smaller of the tax due or $485. See Late  
filing of return, later.  
Download forms, instructions, and publications;  
Order IRS products online;  
Research your tax questions online;  
Search publications online by topic or keyword; and  
Sign up to receive local and national tax news by email.  
Elective payment election. Applicable entities and  
electing taxpayers can elect to treat certain credits as  
elective payments. Any resulting overpayment may result  
in refunds. See the instructions for line 23f. Also, see the  
Instructions for Form 3800.  
Tax forms and publications. The association can  
download or print all of the forms and publications it may  
need on IRS.gov/Forms.  
Otherwise, the association can go to IRS.gov/  
OrderForms to place an order and have forms mailed to it.  
The IRS will process your order for forms and publications  
as soon as possible.  
Photographs of Missing Children  
The IRS is a proud partner with the National Center for  
missing children selected by the Center may appear in  
instructions on pages that would otherwise be blank. You  
can help bring these children home by looking at the  
photographs and calling 1-800-THE-LOST  
General Instructions  
Purpose of Form  
A homeowners association files Form 1120-H as its  
income tax return to take advantage of certain tax  
benefits. These benefits, in effect, allow the association to  
exclude exempt function income (defined later) from its  
gross income.  
(1-800-843-5678) if you recognize a child.  
The Taxpayer Advocate Service  
The Taxpayer Advocate Service (TAS) is an independent  
organization within the IRS that helps taxpayers and  
protects taxpayer rights. TAS strives to ensure that every  
taxpayer is treated fairly and that you know and  
Electing To File Form 1120-H  
A homeowners association elects to take advantage of the  
tax benefits provided by section 528 by filing a properly  
completed Form 1120-H. The election is made separately  
for each tax year and must generally be made by the due  
date, including extensions, of the income tax return.  
understand your rights under the Taxpayer Bill of Rights.  
As a taxpayer, the association has rights that the IRS  
must abide by in its dealings with the association. TAS can  
help the association if:  
A problem is causing financial difficulty for the  
This extension does not extend the time to pay the tax.  
association;  
The association is facing immediate threat of adverse  
Once Form 1120-H is filed, the association cannot  
revoke its election for that year unless the IRS consents.  
The association may request IRS consent by filing a ruling  
request. A user fee must be paid with all ruling requests.  
For more information on ruling requests, see Rev. Proc.  
2023-1, 2023-1 I.R.B. 1 (or any successor), available at  
action; or  
The association has tried repeatedly to contact the IRS  
but no one has responded, or the IRS hasn’t responded  
by the date promised.  
TAS has offices in every state, the District of Columbia,  
and Puerto Rico. Local advocates’ numbers are in their  
local directories and at TaxpayerAdvocate.IRS.gov/  
Contact-Us. The association can also call TAS at  
877-777-4778.  
If the association does not elect to use Form 1120-H, it  
must file the applicable income tax return, for example,  
Form 1120, U.S. Corporation Income Tax Return.  
Dec 14, 2023  
Cat. No. 24935G  
A homeowners association should compare its total tax  
computed on Form 1120-H with its total tax computed on  
Form 1120. The association may file the form that results  
in the lowest tax.  
The association must file Form 1120-H to elect under  
section 528 to be treated as a homeowners association.  
Association property. Association property includes  
real and personal property that:  
Automatic 12-month extension to make election. If  
the homeowners association fails to make the regulatory  
election to be treated as a homeowners association, it can  
get an automatic 12-month extension to make the section  
528 election, provided corrective action is taken within 12  
months of the due date (including extension) of the return.  
See Regulations section 301.9100-2 for more information.  
1. The association holds,  
2. The association's members hold in common,  
3. The association's members hold privately within the  
association, and  
4. Is owned by a governmental unit and is used to  
benefit the unit's residents.  
Tax rate. The taxable income of a homeowners  
Timeshare association property includes property  
related to the timeshare project that the association or its  
members have rights to use. These rights must arise out  
of recorded easements, covenants, or other recorded  
instruments.  
For more information, see Regulations section 1.528-3.  
Taxable income. Taxable income is the excess, if any, of:  
association that files its tax return on Form 1120-H is  
taxed at a flat rate of 30% for condominium management  
associations and residential real estate associations. The  
tax rate for timeshare associations is 32%. These rates  
apply to both ordinary income and capital gains.  
If the association is tax exempt under section 501(a),  
do not file Form 1120-H. See section 6033 and related  
regulations. If the association loses its exempt status, see  
Regulations section 1.528-8(e).  
1. Gross income for the tax year, excluding exempt  
function income, over  
2. Allowed deductions directly connected with  
producing any gross income except exempt function  
income. Allowed deductions include a specific $100  
deduction. The following are not allowed.  
Definitions  
Homeowners association. There are three types of  
homeowners associations.  
Net operating loss deduction (section 172).  
1. A condominium management association organized  
and operated to acquire, build, manage, maintain, and  
care for the property in a condominium project  
Deductions under Part VIII of subchapter B (special  
deductions for corporations).  
substantially all of whose units are homes for individuals.  
If facilities are used (or personnel are employed) for  
both exempt and nonexempt purposes, see Regulations  
section 1.528-10.  
2. A residential real estate management association  
organized and operated to acquire, build, manage,  
maintain, and care for a subdivision, development, or  
similar area substantially all of whose lots or buildings are  
homes for individuals.  
3. A timeshare association (other than a condominium  
management association) organized and operated to  
acquire, build, manage, maintain, and care for the  
property that has members who hold a timeshare right to  
use, or a timeshare ownership interest in, real property of  
the timeshare association. A timeshare association cannot  
be a condominium management association.  
Exempt function income. Exempt function income  
consists of membership dues, fees, or assessments from  
(a) owners of condominium housing units; (b) owners of  
real property in the case of a residential real estate  
management association; or (c) owners of timeshare  
rights to use, or timeshare ownership interests in, real  
property in the case of a timeshare association. This  
income must come from the members as owners, not as  
customers, of the association's services.  
Assessments or fees for a common activity qualify but  
charges for providing services don’t qualify.  
See Regulations section 1.528-4 for information  
regarding the “substantially all” test for condominium  
management associations and residential real estate  
management associations.  
Examples. In general, exempt function income includes  
assessments made to:  
1. Pay principal, interest, and real estate taxes on  
To qualify as a homeowners association, the following  
association property;  
must apply.  
2. Maintain association property; and  
3. Clear snow from public areas and remove trash.  
At least 60% of the association's gross income for the  
tax year must consist of exempt function income (defined  
later).  
Income that is not exempt function income includes:  
At least 90% of the association's expenses for the tax  
1. Amounts that are not includible in the organization's  
gross income other than under section 528 (for example,  
tax-exempt interest);  
year must consist of expenses to acquire, build, manage,  
maintain, and care for its property, and, in the case of a  
timeshare association, for activities provided to, or on  
behalf of, members of the timeshare association.  
2. Payments from nonmembers;  
No private shareholder or individual can profit from the  
3. Payments from members for special use of the  
organization's facilities, apart from the use generally  
available to all members;  
association's net earnings except by acquiring, building,  
managing, maintaining, or caring for association property  
or by a rebate of excess membership dues, fees, or  
assessments.  
4. Interest on amounts in a sinking fund;  
2
Instructions for Form 1120-H (2023)  
   
5. Payments for work done on nonassociation  
property; and  
Who Must Sign  
The return must be signed and dated by the president,  
vice president, treasurer, assistant treasurer, chief  
accounting officer, or any other association officer (such  
as tax officer) authorized to sign.  
6. Members' payments for transportation.  
For more information, see Regulations section 1.528-9.  
When To File  
If a return is filed on behalf of an association by a  
receiver, trustee, or assignee, the fiduciary must sign the  
return, instead of the association officer. Returns and  
forms signed by a receiver or trustee in bankruptcy on  
behalf of an association must be accompanied by a copy  
of the order or instructions of the court authorizing signing  
of the return or form.  
If an association officer completes Form 1120-H, the  
paid preparer space should remain blank. Anyone who  
prepares Form 1120-H but doesn’t charge the association  
should not complete that section. Generally, anyone who  
is paid to prepare the return must sign it and fill in the  
“Paid Preparer Use Only” area.  
Generally, an association must file Form 1120-H by the  
15th day of the 4th month after the end of its tax year.  
However, an association with a fiscal year ending June  
30 must file by the 15th day of the 3rd month after the end  
of its tax year. An association with a short tax year ending  
any time in June will be treated as if the short year ended  
on June 30, and must file by the 15th day of the 3rd month  
after the end of its tax year.  
If the due date falls on a Saturday, Sunday, or legal  
holiday, the association may file on the next business day.  
Private delivery services (PDSs). Associations can  
use certain PDSs designated by the IRS to meet the  
“timely mailing as timely filing/paying” rule for tax returns.  
Go to IRS.gov/PDS for the current list of designated  
services.  
The paid preparer must complete the required preparer  
information and:  
Sign the return in the space provided for the preparer's  
signature, and  
Give a copy of the return to the taxpayer.  
The PDS can tell you how to get written proof of the  
mailing date.  
Note. A paid preparer may sign the original or amended  
returns by rubber stamp, mechanical device, or computer  
software program.  
For the IRS mailing address to use if you are using a  
PDSs can't deliver items to P.O. boxes. You must  
Paid Preparer Authorization  
use the U.S. Postal Service to mail any item to an  
!
If the association wants to allow the IRS to discuss its  
2023 tax return with the paid preparer who signed it,  
check the “Yes” box in the signature area of the return.  
This authorization applies only to the individual whose  
signature appears in the “Paid Preparer Use Only” section  
of the return. It doesn’t apply to the firm, if any, shown in  
that section.  
CAUTION  
IRS P.O. box address.  
Extension. File Form 7004, Application for Automatic  
Extension of Time To File Certain Business Income Tax,  
Information, and Other Returns, to request an extension of  
time to file. Generally, the association must file Form 7004  
by the regular due date of the return. See the Instructions  
for Form 7004.  
If the “Yes” box is checked, the association is  
authorizing the IRS to call the paid preparer to answer any  
questions that may arise during the processing of its  
return. The association is also authorizing the paid  
preparer to:  
If the association elects to file Form 1120-H, it  
should file for extension on Form 7004 using the  
!
CAUTION  
original form type assigned to the entity.  
Where To File  
File the association's return at the address listed below.  
If the association’s principal business, office, or agency is located  
in:  
Use the following address:  
Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana,  
Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire,  
New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode  
Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia,  
Wisconsin  
Department of the Treasury  
Internal Revenue Service Center  
Kansas City, MO  
64999-0012  
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida,  
Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi,  
Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota,  
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming  
Department of the Treasury  
Internal Revenue Service Center  
Ogden, UT 84201-0012  
A foreign country or U.S. territory  
Internal Revenue Service Center  
P.O. Box 409101  
Ogden, UT 84409  
Instructions for Form 1120-H (2023)  
3
 
Give the IRS any information that is missing from the  
accrual, or any other method authorized by the Internal  
Revenue Code.  
return;  
Call the IRS for information about the processing of the  
Change in accounting method. Generally, the  
association must get IRS consent to change either an  
overall method of accounting or the accounting treatment  
of any material item. To do so, the association must  
generally file Form 3115, Application for Change in  
Accounting Method. See the Instructions for Form 3115  
and Pub. 538, Accounting Periods and Methods, for more  
information and exceptions.  
return or the status of any related refund or payment(s);  
and  
Respond to certain IRS notices about math errors,  
offsets, and return preparation.  
The association isn’t authorizing the paid preparer to  
receive any refund check, bind the association to anything  
(including any additional tax liability), or otherwise  
represent the association before the IRS.  
The authorization will automatically end no later than  
the due date (excluding extensions) for filing the  
association's 2024 tax return. If the association wants to  
expand the paid preparer's authorization, see Pub. 947,  
Practice Before the IRS and Power of Attorney.  
Change of Tax Year  
Generally, an association must get the consent of the IRS  
before changing its tax year by filing Form 1128,  
Application To Adopt, Change, or Retain a Tax Year.  
However, under certain conditions, an association can  
change its tax year without getting the consent.  
Other Forms and Statements That  
May Be Required  
For more information on change of tax year, see the  
Instructions for Form 1128 and Pub. 538.  
See the Instructions for Form 1120 and Pub. 542,  
Corporations, for a list of other forms and statements the  
association may be required to file.  
Rounding Off to Whole Dollars  
You may enter decimal points and cents when completing  
your return. However, you should round off cents to whole  
dollars on your return, forms, and schedules to make  
completing your return easier. You must either round off all  
amounts on your return to whole dollars, or use cents for  
all amounts. To round, drop amounts under 50 cents and  
increase amounts from 50 to 99 cents to the next dollar.  
For example, $8.40 rounds to $8 and $8.50 rounds to $9.  
Qualified opportunity investment. If you deferred a  
capital gain in a qualified opportunity fund (QOF), you  
must file your return with Schedule D (Form 1120), Capital  
Gains and Losses; Form 8949, Sales and Other  
Dispositions of Capital Assets; and Form 8997, Initial and  
Annual Statement of Qualified Opportunity Fund (QOF)  
Investments, attached. You will need to file Form 8997  
annually until you dispose of the investment. See the Form  
8997 instructions.  
If you have to add two or more amounts to figure the  
amount to enter on a line, include cents when adding the  
amounts and round off only the total.  
Assembling the Return  
Payment of Tax (Line 24)  
To ensure that the association’s tax return is correctly  
processed, attach all forms and schedules after Form  
1120-H in the following order.  
The association must pay any tax due in full no later than  
the due date for filing its tax return (not including  
extensions). Do not include the payment with the tax  
return. However, see Line 24. Amount owed, later.  
1. Form 4136.  
2. Form 8978.  
Electronic deposit requirement. Associations must use  
electronic funds transfers (EFTs) to make all federal tax  
deposits (such as deposits of employment, excise, and  
income tax). Generally, EFTs are made using the  
Electronic Federal Tax Payment System (EFTPS).  
However, if the association doesn’t want to use EFTPS, it  
can arrange for its tax professional, financial institution,  
payroll service, or other trusted third party to make  
deposits on its behalf. Also, it may arrange for its financial  
institution to initiate a same-day wire payment (discussed  
below) on its behalf. EFTPS is a free service provided by  
the Department of the Treasury. Services provided by a  
tax professional, financial institution, payroll service, or  
other third party may have a fee.  
To get more information about EFTPS or to enroll in  
EFTPS, go to EFTPS.gov, or call 800-555-4477. To  
contact EFTPS using Telecommunications Relay Services  
(TRS) for people who are deaf, hard of hearing, or have a  
speech disability, dial 711 and then provide the TRS  
assistant the 800-555-4477 number above or  
800-733-4829. Additional information about EFTPS is also  
available in Pub. 966.  
3. Form 8941.  
4. Form 3800.  
5. Schedules in alphabetical order.  
6. Additional forms in numerical order.  
7. Supporting statements and attachments.  
Complete every applicable entry space on Form  
1120-H. Do not enter “See Attached” or “Available Upon  
Request” instead of completing the entry spaces. If more  
space is needed on the forms or schedules, attach  
separate sheets using the same size and format as the  
printed forms. If there are supporting statements and  
attachments, arrange them in the same order as the  
schedules or forms they support and attach them last.  
Show the totals on the printed forms. Enter the  
association's name and employer identification number  
(EIN) on each supporting statement or attachment.  
Accounting Methods  
Figure taxable income using the method of accounting  
regularly used in keeping the association's books and  
records. In all cases, the method used must clearly show  
taxable income. Permissible methods include cash,  
4
Instructions for Form 1120-H (2023)  
attach an explanation when the association's return is  
filed.  
Other penalties. Other penalties can be imposed for  
negligence, substantial understatement of tax, reportable  
transaction understatements, and fraud. See sections  
6662, 6662A, and 6663.  
Depositing on time. For deposits made by EFTPS to be  
on time, the association must submit the deposit by 8 p.m.  
Eastern time the day before the date the deposit is due. If  
the association uses a third party to make deposits on its  
behalf, they may have different cutoff times.  
Same-day wire payment option. If the association fails  
to submit a deposit transaction on EFTPS by 8 p.m.  
Eastern time the day before the date a deposit is due, it  
can still make its deposit on time by using the Federal Tax  
Collection Service (FTCS). To use the same-day wire  
payment method, the association will need to make  
arrangements with its financial institution ahead of time.  
Check with the financial institution regarding availability,  
deadlines, and costs. Financial institutions may charge a  
fee for payments made this way. To learn more about the  
information you will need to provide your financial  
institution to make a same-day wire payment, go to  
Specific Instructions  
Period covered. File the 2023 return for calendar year  
2023, and fiscal years that begin in 2023 and end in 2024.  
For a fiscal or short tax year return, fill in the tax year  
space at the top of the form.  
The 2023 Form 1120-H can also be used if (a) the  
association has a tax year of less than 12 months that  
begins and ends in 2024, and (b) the 2024 Form 1120-H  
isn’t available at the time the association is required to file  
its return.  
The association must show its 2024 tax year on the  
2023 Form 1120-H and take into account any tax law  
changes that are effective for tax years beginning after  
December 31, 2023.  
Name and address. Enter the association's true name  
(as set forth in the charter or other legal document  
creating it), address, and EIN on the appropriate lines.  
Include the suite, room, or other unit number after the  
street address. If the post office doesn’t deliver mail to the  
street address and the association has a P.O. box, show  
the box number instead.  
If the association receives its mail in care of a third  
party (such as an accountant or an attorney), enter on the  
street address line “C/O” followed by the third party's  
name and street address or P.O. box.  
If the association has a foreign address, include the city  
or town, state or province, country, and foreign postal  
code. Do not abbreviate the country name. Follow the  
country's practice for entering the name of the state or  
province and postal code.  
Estimated Tax  
The estimated tax and alternative minimum tax  
requirements do not apply to homeowners associations  
electing to file Form 1120-H. However, a homeowners  
association that does not elect to file Form 1120-H may be  
required to make payments of estimated tax. Because the  
election is not made until the return is filed, Form 1120-H  
provides lines for estimated tax payments and the  
crediting of overpayments against tax if estimated tax  
payments or overpayments apply.  
Interest and Penalties  
Interest. Interest is charged on taxes paid late even if an  
extension of time to file is granted. Interest is also charged  
on penalties imposed for failure to file, negligence, fraud,  
substantial valuation misstatements, substantial  
understatements of tax, and reportable transaction  
understatements from the due date (including extensions)  
to the date of payment. The interest charge is figured at a  
rate determined under section 6621.  
Late filing of return. In addition to losing the right to  
elect to file Form 1120-H, a homeowners association that  
doesn’t file its tax return by the due date, including  
extensions, may be penalized 5% of the unpaid tax for  
each month or part of a month the return is late, up to a  
maximum of 25% of the unpaid tax. The minimum penalty  
for a return that is over 60 days late is the smaller of the  
tax due or $485. The penalty will not be imposed if the  
association can show that the failure to file on time was  
due to reasonable cause.  
Late payment of tax. An association that doesn’t pay  
the tax when due may generally be penalized 1/2 of 1% of  
the unpaid tax for each month or part of a month the tax  
isn’t paid, up to a maximum of 25% of the unpaid tax. The  
penalty will not be imposed if the association can show  
that the failure to pay on time was due to reasonable  
cause.  
Employer identification number (EIN). Enter the  
association's EIN. If the association doesn’t have an EIN,  
it must apply for one. An EIN may be applied for:  
Online by visiting IRS.gov/EIN (the EIN is issued  
immediately once the application information is validated);  
or  
By mailing or faxing Form SS-4, Application for  
Employer Identification Number.  
If the association has not received its EIN by the time  
the return is due, enter “Applied for” and the date you  
applied in the space for the EIN. For more details, see the  
Instructions for Form SS-4.  
Note. Only associations located in the United States or  
U.S. territories can use the online process.  
Final return, name change, address change, amen-  
ded return.  
If the association ceases to exist, file Form 1120-H and  
Reasonable-cause determinations. If the association  
receives a notice about a penalty after it files its return,  
send the IRS an explanation and we will determine if the  
association meets the reasonable-cause criteria. Do not  
check the “Final return” box.  
If the association changed its name since it last filed a  
return, check the box for “Name change.”  
Instructions for Form 1120-H (2023)  
5
 
If the association has changed its address since it last  
production of gross income to be deductible in computing  
the unrelated taxable income.  
Line 20. Multiply the amount on line 19 (taxable income)  
by 30% (0.30) (timeshare associations multiply line 19 by  
32% (0.32)). If the amount on line 19 is zero or less than  
zero, enter -0- on line 20.  
filed a return (including a change to an “in care of”  
address), check the box for “Address change.”  
To amend a previously filed Form 1120-H, file a  
corrected Form 1120-H and check the “Amended return”  
box.  
Note. If a change in address occurs after the return is  
filed, use Form 8822-B, Change of Address or  
Line 21. Tax credits. The association may qualify for the  
following tax credits.  
Responsible Party—Business, to notify the IRS of the new  
address. See the instructions for Form 8822-B for details.  
Foreign tax credit (Form 1118).  
General business credit (Form 3800).  
Item A. Type of homeowners association. See  
Definitions, earlier.  
Item B. 60% gross income test. At least 60% of the  
association's gross income for the tax year must consist of  
exempt function income. See Exempt function income,  
earlier.  
Item C. 90% expenditure test. At least 90% of the  
association's expenditures for the tax year must consist of  
expenses to acquire, build, manage, maintain, and care  
for property, and, in the case of a timeshare association,  
for activities provided to, or on behalf of, members of the  
timeshare association. Include current and capital  
expenditures. Use the association's accounting method to  
figure the total.  
Note. Homeowners associations can’t claim the  
investment credit.  
Enter the total applicable credits on line 21 and attach  
the appropriate form(s).  
Line 22. Total tax. If the association must recapture any  
low-income housing credit, qualified electric vehicle credit,  
or new markets credit, include the amount of the recapture  
in the total for line 22. To the right of the entry space, enter  
“LIHTC,” “QEV,” or “NMTC”; “recapture”; and the amount.  
For details, see Form 8611, Recapture of Low-Income  
Housing Credit; Regulations section 1.30-1 (regarding the  
qualified electric vehicle credit); Form 8874, New Markets  
Credit; or Form 8874-B, Notice of Recapture Event for  
New Markets Credit.  
Line 23b. Estimated tax payments. Enter any  
estimated tax payments the association made for the  
current tax year.  
Line 23d. Credit from Form 2439. Enter any credit from  
Form 2439, Notice to Shareholder of Undistributed  
Long-Term Capital Gains, for the corporation’s share of  
the tax paid by a RIC or a real estate investment trust  
(REIT) on undistributed long-term capital gains included in  
the corporation’s income. Attach Form 2439.  
Include:  
1. Salary for an association manager or secretary;  
2. Expenses for gardening, paving, street signs,  
security guards, and property taxes assessed on  
association property;  
3. Current operating and capital expenditures for  
tennis courts, swimming pools, recreation halls, etc.; and  
4. Replacement costs for common buildings, heating,  
air conditioning, elevators, etc.  
Line 23e. Credit for federal tax on fuels. Enter the total  
income tax credit claimed on Form 4136, Credit for  
Federal Tax Paid on Fuels. Attach Form 4136.  
Line 23f. Elective payment election amount from  
Form 3800. Enter on line 23f the total net elective  
payment amount from Form 3800, Part III, line 6, column  
(i). See the Instructions for Form 3800.  
Line 23g. Total payments and credits. Add the  
amounts on lines 23a through 23f and enter the total on  
line 23g.  
Backup withholding. If the association had income tax  
withheld from any payments it received because, for  
example, it failed to give the payer its correct EIN, include  
the amount withheld in the total for line 23g. This type of  
withholding is called backup withholding. Show the  
amount withheld in the blank space in the right-hand  
column between lines 22 and 23g, and enter “Backup  
Withholding.”  
Don’t include expenditures for property that is not  
association property. Also, don’t include investments or  
transfers of funds held to meet future costs. An example  
would be transfers to a sinking fund to replace a roof, even  
if the roof is association property.  
Item D. Enter the association's total expenditures for the  
tax year including those expenditures directly related to  
exempt function income. Use the association's accounting  
method to figure the entry for item D.  
Item E. Show any tax-exempt interest received or  
accrued. Include any exempt-interest dividend received as  
a shareholder in a mutual fund or other regulated  
investment company (RIC).  
Line 13. Interest. The business interest expense  
deduction may be limited for certain associations. The  
Instructions for Form 8990, Limitation on Business Interest  
Expense Under Section 163(j), explain when a business  
interest expense deduction is limited, who is required to  
file Form 8990, and how certain businesses may elect out  
of the business interest expense limitation. See Form  
8990 and its instructions for details.  
Line 24. Amount owed. If you can’t pay the full amount  
of tax you owe, you can apply for an installment  
agreement online.  
Line 15. Other deductions. Expenses, depreciation,  
and similar items must not only qualify as items of  
deduction, but must also be directly connected with the  
You can apply for an installment agreement online if:  
You can’t pay the full amount shown on line 24,  
The total amount you owe is $25,000 or less, and  
You can pay the liability in full in 24 months.  
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Instructions for Form 1120-H (2023)  
   
To apply using the Online Payment Agreement  
Application, go to IRS.gov/OPA. Under an installment  
agreement, you can pay what you owe in monthly  
installments. There are certain conditions you must meet  
to enter into and maintain an installment agreement, such  
as paying the liability within 24 months and making all  
required deposits and timely filing tax returns during the  
length of the agreement. If your installment agreement is  
accepted, you will be charged a fee and you will be  
subject to penalties and interest on the amount of tax not  
paid by the due date of the return.  
control number. Books or records relating to a form or its  
instructions must be retained as long as their contents  
may become material in the administration of any Internal  
Revenue law. Generally, tax returns and return information  
are confidential, as required by section 6103.  
The time needed to complete and file this form will vary  
depending on individual circumstances. The estimated  
burden for business taxpayers filing this form is approved  
under OMB control number 1545-0123 and is included in  
the estimates shown in the instructions for their business  
income tax return.  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You are required to give us the  
information. We need it to ensure that you are complying  
with these laws and to allow us to figure and collect the  
right amount of tax.  
You are not required to provide the information  
requested on a form that is subject to the Paperwork  
Reduction Act unless the form displays a valid OMB  
If you have comments concerning the accuracy of the  
time estimates or suggestions for making this form  
simpler, we would be happy to hear from you. You can  
send us comments from IRS.gov/FormComments. Or, you  
can write to the Internal Revenue Service, Tax Forms and  
Publications Division, 1111 Constitution Ave. NW,  
IR-6526, Washington, DC 20224. Do not send the tax  
form to this office. Instead, see Where To File, earlier.  
Instructions for Form 1120-H (2023)  
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