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BET Business Enterprise Tax. Business Related Taxes. M&R Meals and ... gain or profit, carrying on any business activity within the state, except such ...

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    1. NH Small Business Forum New HampshireDepartment of RevenueAdministration Asst. Utility Property Appraiser James W. Sadler

    2. Outline • General Information • Business Taxes • BPT – Business Profits Tax • BET – Business Enterprise Tax • Business Related Taxes • M&R – Meals and Rentals Tax • I&D – Interest and Dividends Tax • RETT – Real Estate Transfer Tax • E-file • Forms • Filing Errors • Other Issues

    3. General Information • Central Taxpayer Service 603-271-2191 • Tax Payer Advocate Robin Paveglio • Forms Line603-271-2192 • Website – www.revenue.nh.gov or www.nh.gov/revenue

    4. NH Business TaxesBPT • RSA 77-A, Rev Rule 300 • 8.5% of taxable business profits • Gross business income > $50,000, everywhere

    5. NH Business TaxesBPT • Rev 303.01 Compensation for Personal Services of Proprietor, Partner or Member • Fair and reasonable...actual personal services • ...take into account return on assets and non-owner employees • PROP-COMP, PART-COMP Worksheet

    6. NH Business TaxesBPT Comparative Compensation Data, 303.01(e) • NH Occupational and Employment Wages NH Department of Employment Security www.nhes.state.nh.us/elmi/oesfiles.htm Additional Resource: • Occupational Outlook Handbook US Dept. of Labor Statistics http://www.bls.gov/oco/home.htm

    7. NH Business TaxesBPT Rev 303.03 Net Operating Loss • 3 year carryback of NOL no longer required • The amount of carryover is limited to $1,000,000 per year • NOL carried forward for 10 taxable periods, following the year of the loss

    8. NH Business Taxes BET • RSA 77-E, Rev Rule 2400 • Gross business receipts in excess of $150,000 or Enterprise Value Tax Base > $75,000 • 0.75% of the Enterprise Value Tax Base

    9. NH Business Taxes BET • Enterprise Value Tax Base Dividends Paid Compensation Paid or Accrued Interest Paid or Accrued • Credit for BET paid against BPT • Carry forward unused credit for 5 taxable periods

    10. Business Related TaxesM&R • RSA 78-A, Rev Rule 700 • 8% on meals, motor vehicle rental, or room rentals • Commission - retain 3% of the taxes due Return & payment timely filed Maintain appropriate records Telefile if prior year >$25,000

    11. Business Related TaxesI&D • RSA 77, Rev Rule 900 • Gross interest & dividend income > $2,400 • 5% of taxable interest & dividends • Individuals who are inhabitants of NH • Entities with non-transferable sharespossibly - Partnership, LLC, Association, Trust

    12. Business Related Taxes RETT • RSA 78-B, Rev Rule 800 • $0.75 per $100 of valuation of sale granting transfer of real estate and any interest therein, buyer and seller both • Like-kind exchange – RETT implications • Change in entity type • Entity to owner • Entity to entity

    13. efile (payment) • BPT & BETEstimate, Extension, Return Payment, Amended Return Payment,& Tax Notice Payments • I&D, Returns and Payments • M&R, Returns and Payments • DEMO Mode

    14. efile (payment)

    15. Forms • Package X, pdf file, online, free • Power of Attorney Check BoxDP-10 I&D Tax FormBT Summary • SMLLC – same form as its memberMember is a Corp. use Form NH-1120 Member is a Prop. use Form NH-1040 Member is a Part. use Form NH-1065 Member is a Trust use Form NH-1041

    16. Filing Errors • Forms out of sequence • No signature • No BT Summary, neglect Step 2 box • Failure to attach federal forms & schedules • Failure to correctly report prior payments • I&D – Failure to code non-taxable income Section 4

    17. Filing Errors • Estimate payments made under different ID, and failure to report estimates made • Extension, no money due • Amended return for refund when SOL • Spouses filing joint return for 1 proprietorship • Apportionment/Separate Accounting • SMLLC – DIN or FEIN (no SSN)

    18. Other Issues • Separate Entity“Business Organization” - Each enterprise under this definition shall be subject to taxation under RSA 77-A:2 as a separate entity… • Tax Preparation SoftwareComputational errors

    19. Other Issues • Definitions Example • 77-A:1 I. "Business organization" means any enterprise, whether corporation, partnership, limited liability company, proprietorship, association, business trust, real estate trust or other form of organization; organized for gain or profit, carrying on any business activity within the state, except such enterprises as are expressly made exempt from income taxation under the United States Internal Revenue Code as defined in RSA 77-A: 1, XX. Each enterprise under this definition shall be subject to taxation under RSA 77-A:2 as a separate entity… • XII. "Business activity" means a group of actions performed by a business organization for the purpose of earning income or profit from such actions and includes every operation which forms a part of, or a step in, the process of earning income or profit from such group of actions. The actions ordinarily include, but are not limited to, the receipt of money, property, or other items of value and the incurring or payment of expenses. Notwithstanding any other provision of this paragraph, a holder of an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI, shall not be deemed to be carrying on any business activity within this state due solely to its holding an ownership interest in such qualified investment company…

    20. Questions? Thank You