Section Rev 302.07 - Installment Method of Reporting Income(a) Business organizations reporting their income under the installment method, for federal income tax purposes, shall report their income for business profits tax purposes using the same method except as provided in (f) and (g) below.(b) Business organizations selling property on an installment basis shall be considered a business organization until all the installments have been reported and the total tax paid.(c) The gross sales price of the property shall be considered and not the amount received in a particular year for purposes of the gross business income test.(d) Neither the gross selling price nor the installment proceeds shall be included in gross business income except for the year of sale for purposes of the gross business income test.(e) A return reporting the installment income shall be completed and filed every year, regardless of the amount of each installment, if the gross sales price exceeded the applicable filing threshold pursuant to RSA 77-A:6.(f) The reported installment gain income shall not be increased or decreased by income from the other business activity if the filing of a return is due to the reporting of installment income, and the statutory minimum income level other than for the installment sale has not been met.(g) A business organization may elect to report the entire gain or loss in a single year for business profits tax purposes although it has not elected, pursuant to section 453(d) of the IRC, by attaching a completed Form DP-95, "Election to Report Net Gain in a Year of Sale", to the business profits tax return if the filing requirement for subsequent years is solely the result of reporting the gain or loss from the installment sale to New Hampshire.(h) The sale, exchange, or other disposition of an installment obligation by a business organization shall require the inclusion of:(1) The unreported gain or loss in the business organization's business profits tax return covering the year the sale, exchange, or other disposition took place; and(2) The computation of the gain or loss and the basis of the obligation in accordance with IRC section 453B.N.H. Code Admin. R. Rev 302.07
#4192, eff 12-23-86; amd by #4438, eff 6-22-88; 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 XLII Number 41, Filed October 13, 2022, Proposed by #13450, Effective 9/23/2022, Expires 9/24/2032.