Florida is home to thousands of HOA and condo associations. But filing a Florida HOA tax return is not as easy as you may think. Let’s take a closer look.
Contrary to popular belief, homeowner associations are not tax exempt entities at the federal level. Accordingly, they do not receive an IRS tax-exempt letter. Only entities that qualify under code section 501(c)(3) will qualify for tax-exempt status.
When it comes to filing tax returns for an HOA or condominium association, there are generally two options: Form 1120-H and Form 1120. This is a nice advantage that these associations have as most entities do not have a tax filing option. The law prescribes a specific form they are required to file and the entity has no choice in the matter.
But with these two options, questions arise. Which of the two forms has a higher audit risk? Which form will result in the lowest overall tax bill? These questions are more difficult to answer than you may have thought.
Both forms have their advantages and disadvantages. Normally the determining factor is which will yield the lowest tax liability. That is the first thing that any association manager will consider. But in reality, there are many factors that should be carefully examined before determining which form to file.
So what about a Florida HOA tax return?
Florida has no state personal income tax, but the state has specific tax laws as it relates to HOAs. An HOA or condo association that files a federal corporate return using Form 1120 must file a Florida Corporate Income/Franchise Tax Return using Form F-1120. Alternatively, they can file the Florida Corporate Short Form Income Tax Return using Form F-1120A. They must file one of these tax returns no matter is any tax is due.
The good news is that if the HOA files under federal Form 1120-H they are not required to file a Florida return. Accordingly, most HOAs will be exempt from filing in Florida.
So what form is filed?
The good news is that there is some flexibility in which forms are filed. The two main forms you can file are form 1120-H and 1120. Both have pros and cons. Ultimately, form 1120-H has been designed specifically for HOAs and condo associations.
But there are some requirements that must be met if you’re to file using this form. For example, gross income from exempt activities must be at least 60% of overall revenue. Furthermore, at least 90% of all expenses must go towards the administration and maintenance of exempt property or facilities.
There are a couple other requirements. But needless to say, most HOAs and condo associations will meet these requirements. A qualified CPA will help you navigate the requirements. If an association does not meet the requirements, they are required to file Form 1120.
Florida Condo Association Tax Return
Each association is unique and has different characteristics.
Board members must ensure that and potential owner of a property within the HOA’s jurisdiction, it falls on your shoulders to file the right taxes each year. If you fail to do so, not only can there be severe financial penalties to the HOA. As we said previously, there might not be any tax due but it’s always better to file and find out than not file and pay the consequences!
We serve the following Florida (FL) communities:
Alachua, Alford, Altamonte Springs, Altha, Altoona, Alturas, Alva, Anna Maria, Anthony, Apalachicola
Apollo Beach, Apopka, Arcadia, Archer, Argyle, Aripeka, Astatula, Astor, Atlantic Beach, Auburndale
Avon Park, Babson Park, Bagdad, Baker, Balm, Barberville, Bartow, Bascom, Bay Pines, Bell, Belle Glade
Belleair Beach, Belleview, Beverly Hills, Big Pine Key, Blountstown, Boca Grande, Boca Raton, Bokeelia
Bonifay, Bonita Springs, Bostwick, Bowling Green, Boynton Beach, Bradenton, Bradenton Beach, Bradley, Brandon, Branford, Bristol, Bronson, Brooker, Brooksville, Bryant, Bryceville, Bunnell, Bushnell, Callahan, Campbellton, Canal Point, Candler, Cantonment, Cape Canaveral, Cape Coral, Captiva, Carrabelle, Caryville, Cassadaga, Casselberry, Cedar Key, Center Hill, Century, Chattahoochee, Chiefland, Chipley, Chokoloskee, Christmas, Citra, Citrus Ridge, Clarcona, Clarksville, Clearwater, Clearwater Beach, Clermont, Clewiston, Cocoa, Cocoa Beach, Coleman, Copeland, Cortez, Cottondale, Crawfordville, Crescent City, Crestview, Cross City, Crystal Beach, Crystal River, Crystal Springs, Cypress, Dade City, Dania, Davenport, Day, Daytona Beach, De Leon Springs, Debary, Deerfield Beach, Defuniak Springs, Deland, Delray Beach, Deltona, Destin, Doctors Inlet, Dover, Dundee, Dunedin, Dunnellon, Durant, Eagle Lake, Earleton, East Palatka, Eastlake Weir, Eastpoint, Eaton Park, Ebro, Edgewater, Eglin AFB, Elfers, Elkton, Ellenton, Englewood, Estero, Eustis, Everglades City, Evinston, Fairfield, Fedhaven, Felda, Fellsmere, Fernandina Beach, Ferndale, Flagler Beach, Florahome, Floral City, Florida City, Fort Lauderdale, Fort McCoy, Fort Meade, Fort Myers, Fort Myers Beach, Fort Ogden, Fort Pierce, Fort Walton Beach, Fort White, Fountain, Freeport, Frostproof, Fruitland Park, Gainesville, Geneva, Georgetown, Gibsonton, Glen Saint Mary, Glenwood, Goldenrod, Gonzalez, Goodland,
Gotha, Graceville, Graham, Grand Island, Grand Ridge, Grandin, Grant, Green Cove Springs, Greensboro, Greenville, Greenwood, Gretna, Grove City, Groveland, Gulf Breeze, Gulf Hammock, Haines City, Hallandale, Hampton, Harold, Hastings, Havana, Hawthorne, Heathrow, Hernando, Hialeah, High Springs, Highland City, Highland Park, Hilliard, Hobe Sound, Holder, Holiday, Hollister, Hollywood, Holmes Beach, Holt, Homeland, Homestead, Homosassa, Homosassa Springs, Horseshoe Beach, Hosford, Howey In The Hills, Hudson, Hunters Creek, Hurlburt Field, Immokalee, Indialantic, Indian Lake Estates, Indian Rocks Beach, Indiantown, Inglis, Intercession City, Interlachen, Inverness, Islamorada, Island Grove, Istachatta, Jacksonville, Jacksonville Beach, Jasper, Jay, Jennings, Jensen Beach, Jupiter, Kathleen, Kenansville, Key Biscayne, Key Colony Beach, Key Largo, Key West, Keystone Heights, Killarney, Kinard, Kissimmee, La Crosse, Labelle, Lacoochee, Lady Lake, Lake Alfred, Lake Butler, Lake Butter, Lake City, Lake Como, Lake Geneva, Lake Hamilton, Lake Harbor, Lake Helen, Lake Lucerne, Lake Mary, Lake Monroe, Lake Panasoffkee, Lake Placid, Lake Wales, Lake Worth, Lakeland, Lamont, Lanark Village, Land O Lakes, Lantana, Largo, Laurel, Laurel Hill, Lawtey, Lecanto, Lee, Leesburg, Lehigh Acres, Lithia, Live Oak, Lloyd, Lochloosa, Long Key, Longboat Key, Longwood,
Lorida, Loughman, Lowell, Loxahatchee, Lulu, Lutz, Lynn Haven, Macclenny, Madison, Maitland, Malabar, Malone, Manasota, Mango, Marathon, Marathon Shores, Marco Island, Marianna, Mary Esther, Mascotte, Mayo, McAlpin, McDavid, McIntosh, Melbourne, Melbourne Beach, Melrose, Memphis, Merritt Island, Mexico Beach, Miami, Miami Beach, Micanopy, Miccosukee Cpo, Mid Florida, Middleburg, Midway, Milligan, Milton, Mims, Minneola, Miramar Beach, Molino, Monticello, Montverde, Moore Haven, Morriston, Mossy Head, Mount Dora, Mount Pleasant, Mulberry, Murdock, Myakka City, Myrtle Grove, Nalcrest, Naples, Neptune Beach, New Port Richey, New Smyrna Beach, Newberry, Niceville, Nichols, Nobleton, Nocatee, Nokomis, Noma, North Fort Myers, North Miami Beach, North Palm Beach, North Port, O Brien, Oak Hill, Oakland, Ocala, Ochopee, Ocklawaha, Ocoee, Odessa, Okahumpka, Okeechobee, Old Town, Oldsmar, Olustee, Ona, Oneco, Opa Locka, Orange City, Orange Lake, Orange Park, Orange Springs, Orlando, Ormond Beach, Osprey, Osteen, Otter Creek, Oviedo, Oxford, Ozona, Pahokee, Paisley, Palatka, Palm Bay, Palm Beach, Palm City, Palm Coast, Palm Harbor, Palm River-Clair Mel, Palm Valley, Palmdale, Palmetto, Panacea, Panama City, Panama City Beach, Parrish, Patrick AFB, Paxton, Pembroke Pines, Penney Farms, Pensacola, Perry, Pierson, Pine Island Ridge, Pine Ridge, Pineland, Pinellas Park, Pinetta, Placida, Plant City, Plymouth, Point Washington, Polk City, Pomona Park, Pompano Beach, Ponce De Leon, Ponte Vedra Beach, Port Charlotte, Port Orange, Port Richey, Port Saint Joe, Port Saint Lucie, Port Salerno, Port St. Lucie, Punta Gorda, Putnam Hall, Quincy, Raiford, Reddick, River Ranch, Riverview, Rockledge, Roseland, Rotonda West, Ruskin, Safety Harbor, Saint Augustine, Saint Cloud, Saint James City, Saint Leo, Saint Marks, Saint Petersburg, Salem, San Antonio, San Mateo, Sanderson, Sanford, Sanibel, Santa Rosa Beach, Sarasota, Satellite Beach, Satsuma, Scottsmoor, Sebastian, Sebring, Seffner, Seminole, Seville, Shady Grove, Shalimar, Sharpes, Silver Springs, Sneads, Sopchoppy, Sorrento, South Bay, Sparr, Spring Hill, St. Augustine, St. Leo, Starke, Steinhatchee, Stuart, Sugarloaf Shores, Sumatra, Summerfield, Summerland Key, Sumterville, Sun City, Sun City Center, Sunnyside, Suwannee, Sydney, Tallahassee, Tallevast, Tampa, Tangerine, Tarpon Springs, Tavares, Tavernier, Telogia, Terra Ceia, The Villages, Thonotosassa, Titusville, Trenton, Trilby, Umatilla, Valparaiso, Valrico, Vanderbilt Beach, Venice, Venus, Vernon, Vero Beach, Wabasso, Wacissa, Wakulla Springs, Waldo, Wauchula, Wausau, Waverly, Webster, Weirsdale, Welaka, Wellborn, West Little River, West Palm Beach, Weston, Westville, Wewahitchka, White Springs, Wildwood, Williston, Wimauma, Windermere, Winter Beach, Winter Garden, Winter Haven, Winter Park, Winter Springs, Woodville, Worthington Springs, Yalaha, Yankeetown, Youngstown, Yulee, Zellwood, Zephyrhills, Zolfo Springs