Q: Am I an owner of real property according to IRS Instructions for Form 1120-H (2020)?
To my knowledge corporation referred to herein files 1120-H first time since its incorporation in 1981. It states it is a residential real estate association and claims exempt function income representing it came from me and others as "owners of real property".
I think I may be misrepresented in this matter. Instructions provide " Exempt function income consists of … fees or assessments from … (b) owners of real property in the case of a residential real estate management association..."
I am a common stockholder (no par, non assessable) in a Texas for-profit corp. The corporation is named on the deed to the mobile home park. I contend I am renting (leasing) the space occupied by my mobile home in it's MHP. Corporation contends I am deemed to be an owner along with all the other shareholders that occupy a space in the park. I have also been told I only a member of an HOA for tax purposes but not otherwise, I am a shareholder.
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A:
Hi:
The form you mentioned, 1120-H is only for a HOA "Home Owners Association" to use for filing. It allows them to claim some exemptions.
I'm not sure why you think that for has any bearing on your status as a homeowner. To be sure, in some trailer parks the HOA owns the land and while you own your "home/trailer" you do not own the land upon which it sits. In that case there are some taxes to pay, usually "personal property tax". If you own the land upon which you have your trailer, you will pay Real Estate Property tax. A "whole look" at your financial status and what you own, etc., would be needed to find some exemptions and other breaks.
Please let me know if you need more info.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (631) 339-6228
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A:
The form you mentioned, 1120-H is only for a HOA "Home Owners Association" to use for filing. It allows them to claim some exemptions.
I'm not sure why you think that for has any bearing on your status as a homeowner. To be sure, in some trailer parks the HOA owns the land and while you own your "home/trailer" you do not own the land upon which it sits. In that case there are some taxes to pay, usually "personal property tax". If you own the land upon which you have your trailer, you will pay Real Estate Property tax. A "whole look" at your financial status and what you own, etc., would be needed to find some exemptions and other breaks.
Please let me know if you need more info.
A:
Your for profit corporation owns the park, you lease the space from the corporation. Pretty straightforward.
If there's an HOA, that's a separate entity, with separate rights, obligations and tax issues. HOAs are typically set up as non-profit entities. Non-profits may or may not be taxable. Non-profits do not have owners, though they typically have members. It's not clear whether there is or is not an HOA involved here. If your corporation's property is a part of the subdivision operated by an HOA, then that corporation is the member of the HOA.
It's also not clear to me what corporation "contends" that you're an owner, what it contends you own, and what effect it may or may not have on anything.
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