N.H. Admin. Code § Rev 302.05 - Business Organizations Whose Income or Expenses are Federally Reportable by the Owners

(a) Any business organization, whose income or expenses are reportable by the true owners for federal income tax purposes, shall include all items of income and expense in its business profits tax return rather than the return of the shareholder, partner, or other owner.

(b) Any element of income, expense, or both, required to be reported at the entity level for purposes of the business profits tax shall be removed from the true owner's business profits tax return.

(c) The tax for the business organization shall be computed before any distributions, adjustments, or both, resulting from the application of federal tax law provisions which permit the pass-through of items of income or expenses to the owners.

(d) A real estate investment trust shall be subject to the business profits tax on the taxable income of the real estate investment trust prior to adjustments provided in section 857(b)(2) of the IRC.

(e) A regulated investment company shall be subject to the business profits tax on the taxable income of the regulated investment company prior to the adjustments provided in section 852(b)(2) of the IRC.

(f) A single member limited liability company shall:

(1) Obtain a New Hampshire taxpayer identification number, as defined in Rev 301.31 from the department at least 30 days prior to filing any tax documents with the department; and

(2) Determine its gross business profits as provided in (a) above, in accordance with:

a.RSA 77-A:1, III(a), if the member is a corporation;

b.RSA 77-A:1, III(c), if the member is a partnership;

c.RSA 77-A:1, III(d), if the member is a proprietor; and

d.RSA 77-A:1, III(e), if the member is a trust;

(g) A qualified subchapter S corporation subsidiary shall determine its gross business profits, as provided in (a) above, in accordance with RSA 77-A:1, III(b).

(h) A single member limited liability company and a qualified subchapter S corporation subsidiary shall maintain records, as provided in RSA 77-A:11, sufficiently detailed to calculate:

(1) Gross business profits;

(2) Additions and deductions as provided in RSA 77-A:4; and

(3) Apportionment factors as provided in RSA 77-A:3.

Notes

N.H. Admin. Code § Rev 302.05

#4192, eff 12-23-86; ss by #5490, eff 10-19-92; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06

Amended byVolume XXXV Number 06, Filed February 12, 2015 , Proposed by #10758, Effective 1/16/2015, Expires1/16/2025. Amended by Volume XXXVII Number 37, Filed September 14, 2017, Proposed by #12361, Effective 8/9/2017, Expires 8/9/2027.