When did a Florida timeshare homeowners association filing federal Form 1120-H have to file Florida Form F-1120?

Plain-English summary

A timeshare homeowners association had to file Florida Form F-1120 for the first year it legally elected and filed federal Form 1120-H. That initial Florida filing served as the required notification return.

No later F-1120 was required while the association continued lawful annual Form 1120-H filings and neither filed nor was required to file federal Form 1120. If it filed or had to file Form 1120, it also had to file and pay any Florida tax on F-1120. The first later year returning to Form 1120-H required another Florida filing.

What this means for you

The Florida obligation followed changes in the association's federal return type. Continuous lawful 1120-H treatment reduced annual Florida filings after the initial notification, but switching to Form 1120 reset the requirement.

Common questions

Q: Was an F-1120 required in the first 1120-H year? Yes.

Q: Was it required every later 1120-H year? No, while the stated conditions continued.

Q: What if the association filed federal Form 1120? It had to file Florida Form F-1120.

Q: What happened when it later returned to Form 1120-H? The first return year required another F-1120.

Citations and references

• Fla. Stat. §§ 220.21 and 220.13(2) — Florida return and taxable-income provisions cited
• Fla. Admin. Code r. 12C-1.022(1)(c) — homeowners-association filing requirements
• I.R.C. § 528 and federal Forms 1120-H and 1120
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01C1-013

Original ruling text

SUMMARY

QUESTION: What are the Florida filing requirements of a
timeshare association that legally elects and files Form
1120-H federally in one year and continues to annually file
Form 1120-H federally on a legal basis for each tax year
thereafter?

ANSWER - Based on the Facts below: Per Rule 12C1.022(1)(c)2., F.A.C., homeowners associations that elect
to be taxed under s. 528, I.R.C., and file federal Form
1120-H, must file the Florida Corporate Income/Franchise
and Emergency Excise Tax Return (F-1120), answering
questions that are appropriate, for the first year under
the Florida Income Tax Code that Form 1120-H is filed
federally. Returns for subsequent years are not required
so long as the homeowners association does not file, or is
not required to file federal Form 1120. However, returns
are required for taxable years when federal Form 1120 is
filed, and for the first year federal Form 1120-H is filed
subsequent to the filing of federal Form 1120.

Nov 06, 2001

Re: Technical Assistance Advisement 01C1-013
Corporate Income Tax - Timeshare Homeowners Associations
Return Filing Requirements
Section 220.21, F.S., and Rule 12C-1.022, F.A.C.
XXX (hereinafter referred to as "the Taxpayer")

Dear :

Your letter of XX, requests a Technical Assistance Advisement
regarding the requirements to file a Florida corporate income
tax return. This response to your request constitutes a
Technical Assistance Advisement under Chapter 12-11, Florida
Administrative Code, and is issued to you under authority of s.
213.22, Florida Statutes.

FACTS SUPPLIED BY TAXPAYER

The Taxpayer is an organization comprised of companies and
professionals in the vacation ownership (timeshare) industry.
The Taxpayer's membership includes over 100 timeshare
associations, each a Florida not-for-profit corporation,
organized and operating pursuant to Florida law. The Taxpayer's
requested ruling assumes that the member legally elects to file
Form 1120-H federally in its initial tax year, and legally
continues to elect and file Form 1120-H federally for each tax
year thereafter.

LEGAL AUTHORITY

Rule 12C-1.022(1)(c), F.A.C., states:

1. Homeowners associations, including corporations or
   associations organized to operate condominiums pursuant to
   the Condominium Act, that are required to file federal
   returns on Form 1120, or that elect to file federal returns
   on Form 1120, must file a Florida Form F-1120 annually,
   regardless of whether any tax may be due.

2. Homeowners associations that elect to be taxed under s.
   528, I.R.C., and file federal Form 1120-H, must file the
   Florida Corporate Income/Franchise and Emergency Excise Tax
   Return, answering questions that are appropriate, for the
   first year under the Florida Income Tax Code that Form
   1120-H is filed. Returns for subsequent years are not
   required so long as the homeowners association does not
   file federal Form 1120. However, returns are required for
   taxable years when federal Form 1120 is filed, and for the
   first year federal Form 1120-H is filed subsequent to the
   filing of Form 1120.

Section 220.13(2), F.S., states in part:

For purposes of this section, a taxpayer's taxable income
for the taxable year means taxable income as defined in s.
63 of the Internal Revenue Code and properly reportable for

federal income tax purposes for the taxable year, but
subject to the limitations set forth in paragraph (1)(b)
with respect to the deductions provided by ss. 172
(relating to net operating losses), 170(d)(2) (relating to
excess charitable contributions), 404(a)(1)(D) (relating to
excess pension trust contributions), 404(a)(3)(A) and (B)
(to the extent relating to excess stock bonus and profitsharing trust contributions), and 1212 (relating to capital
losses) of the Internal Revenue Code, except that, subject
to the same limitations, the term:...

(g) "Taxable income", in the case of a cooperative
corporation or association, means the taxable income of
such organization determined in accordance with the
provisions of ss. 1381 through 1388 of the Internal Revenue
Code;

(l) "Taxable income", in the case of a taxpayer whose
taxable income is not otherwise defined in this subsection,
means the sum of amounts to which a tax rate specified in
s. 11 of the Internal Revenue Code plus the amount to which
a tax rate specified in s. 1201(a)(2) of the Internal
Revenue Code are applied for federal income tax purposes.

ISSUE PRESENTED

What are the Florida filing requirements of a timeshare
homeowners association that legally elects and files Form 1120-H
federally in one year and continues to annually file Form 1120-H
federally on a legal basis for each tax year thereafter?

DISCUSSION AND ANALYSIS

Rule 12C-1.022(1)(c), F.A.C., specifically provides that
homeowners associations (including timeshare homeowners
associations) that elect to be taxed under s. 528, I.R.C., and
file federal Form 1120-H, must file the Florida Corporate
Income/Franchise and Emergency Excise Tax Return, Form F-1120,
answering questions that are appropriate, for the first year
under the Florida Income Tax Code that Form 1120-H is filed
federally. Returns for subsequent years are not required so

long as the homeowners association does not file, or is not
required to file, federal Form 1120. However, returns are
required for taxable years when federal Form 1120 is filed, and
for the first year federal Form 1120-H is filed subsequent to
the filing of federal Form 1120.

Based on this rule, timeshare homeowners associations that file
federal Form 1120-H are not required to file Form F-1120, other
than an initial notification return, so long as the timeshare
homeowners association continues to annually file federal Form
1120-H. However, if the association is required to file, or
files federal Form 1120, the association is required to file and
pay tax in Florida on Form F-1120.

CONCLUSION

Based on Rule 12C-1.022(1)(c), F.A.C., Form F-1120 is only
required to be filed in the initial year that a timeshare
homeowners association legally elects and files Form 1120-H
federally, as long as the timeshare homeowners association
continues to annually file federal Form 1120-H on a legal basis
for each tax year thereafter.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S. which is binding on the department only
under facts and circumstances described in the request for this
advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Ordinarily, confidential
information, such as the identity of the person to whom an
advisement is issued, must be deleted before public disclosure.
In the situation in which a taxpayer association is seeking an

advisement on behalf of its members, having the identity of the
requesting association remain in the published advisement is
useful to those using the advisement for guidance. No specific
taxpayer information is included in an advisement issued to a
taxpayer association, and concerns about protecting proprietary
information are not present under such circumstances. However,
in light of statutory requirements as to confidentiality, a
taxpayer association must give its consent to the Department to
allow its name to be included in the published advisement. The
taxpayer association to which this advisement is issued has
given written consent to allow the disclosure of its identity.

Sincerely,

Robert DuCasse
Technical Assistance and Dispute
Resolution

RCD/rd
Control No. 47022