My condo taxes are overtaxing my brain!
April 8, 2009 8:13 AM Subscribe
Unfortunately for my condo association and me, I have been designated to do our annual taxes. It's supposed to be really easy. I just fill out form 1120h and pay the tax. Except, according to my calculations (and including the $100 deduction), the government owes us money?! (only $5 of our income is taxable) What am I doing wrong? Why would the government owe us money when we haven't yet paid any tax?
I will go to a tax professional, albeit embarrassed and defeated, if necessary.
I will go to a tax professional, albeit embarrassed and defeated, if necessary.
Have you made a lot of improvements in the building over the last year? Roofing, carpeting in the hall or lobby, exterior work, etc? Or maybe an energy improvement, like with the windows or heater? Some, particularly anything that leads to being more energy efficient, will be a refundable credit. If your refundable credits exceed the tax owed you get a refund of the difference.
(FWIW, I'm familiar with rental property taxes, but not condos. however, a lot of the credits are similar or the same)
posted by Kellydamnit at 9:27 AM on April 8, 2009
(FWIW, I'm familiar with rental property taxes, but not condos. however, a lot of the credits are similar or the same)
posted by Kellydamnit at 9:27 AM on April 8, 2009
Response by poster: To clarify: This is the first full year that the association has been in operation. We have $5 taxable (interest) income. The remaining lines on the form are all $0. I end up with -$95 if I take the $100 deduction and therefore -$28 if I take 30% of it. It looks like one of three results are possible 1) we owe nothing, 2) we owe $28 or 3) the government owes us $28. But, which is it?
posted by B-squared at 11:04 AM on April 8, 2009
posted by B-squared at 11:04 AM on April 8, 2009
I think you should put -0- in line 19, not -$95. If the credits are all zero, that means no tax due and no refund due.
posted by grouse at 11:43 AM on April 8, 2009
posted by grouse at 11:43 AM on April 8, 2009
This thread is closed to new comments.
Is line 19 negative? Usually when subtractions like that occur, the IRS tells you to enter a zero rather than a negative number. They don't do so explicitly on the form or the instructions here, but I think it's the only thing that makes sense. Oppose it to what happens on lines 24 and 25 where they explicitly tell you to do the same subtraction in both directions. Maybe you can call them and ask.
posted by grouse at 8:29 AM on April 8, 2009