What is the flat tax rate applied to the net amount of taxable income for Form 1120-H?

The flat tax rate applied to the net amount of taxable income for Form 1120-H is 30%. This tax form is specifically utilized by homeowners associations that qualify under the Internal Revenue Code. It provides a simplified tax process for these organizations, allowing them to pay a flat rate on their income as opposed to dealing with complex tax structures often applied to other types of entities.

In this context, the reason 30% is correct lies in the IRS's guidelines for homeowners associations, which generally fall under specific tax rules intended to ease the reporting burden while ensuring proper taxation.