N.H. Admin. Code § Rev 303.05 - Sale or Exchange of an Interest or a Beneficial Interest in a Business Organization

(a) A business organization that did not, in a prior tax period, make a required addition to gross business profits for an increase of the basis of an asset under RSA 77-A:4, XIV, as in effect on June 20, 2016, due to the sale or exchange of an interest or a beneficial interest in a business organization before January 1, 2016, shall not be allowed:

(1) A deduction against gross business profits in any subsequent period for depreciation or amortization on the increased basis in the asset to the extent of the under-reported addition to gross business profits; and

(2) An increase in the basis of the asset upon disposition in a subsequent period to the extent of the under-reported addition to gross business profits.

(b) For sales or exchanges of interests in business organizations that occur on and after January 1, 2016:

(1) A business organization's election or nonelection under RSA 77-A:4, XIV(b) shall be irrevocable upon the filing of the original return for the tax period in which the sale or exchange of the ownership interest occurs; and

(2) A business organization shall be deemed to have made the election available under RSA 77-A:4, XIV(b) if such business organization includes in adjusted gross business profits the net increase in the basis of all assets transferred or sold in the tax period in which the sale or exchange of the ownership interest occurs.

Notes

N.H. Admin. Code § Rev 303.05

Amended by Volume XXXVII Number 23, Filed June 8, 2017, Proposed by #12186, Effective 5/25/2017, Expires 5/25/2027.