N.H. Code Admin. R. Rev 307.04

Current through Register No. 24, June 13, 2024

Section Rev 307.04 - Proprietorship Returns and Declarations

(a) Proprietors, except members of a combined group conducting a unitary business, shall:

(1) Report their business activity by completing and filing Form NH-1040; and

(2) Attach a clear and legible copy of the following applicable schedules or forms as filed with the United States Internal Revenue Service with federal Form 1040:

a. Schedule C, Profit or Loss From Business;

b. Schedule D, Capital Gains and Losses;

c. Schedule E, Supplemental Income and Loss;

d. Federal Form 4797, Sales of Business Property;

e. Federal Form 6252, Installment Sale Income; and

f. Any other federal form required by the United States Internal Revenue Service.

(b) Married proprietors filing a federal individual income tax return jointly shall:

(1) Not file a New Hampshire individual business profits tax return jointly or offset the profit and losses of each proprietor;

(2) Report their respective gross business profits, additions and deductions, and taxable business profits using Form NH-1040;

(3) Not divide the income, expenses, additions and deductions of a single proprietorship between the 2 spouses;

(4) Calculate their respective:

a. Apportionment factors; and

b. Business profits tax; and

(5) Make all estimated payments using the names and social security numbers as shown on the business profits tax return as filed.

(c) Individuals who, for federal income tax purposes, report a pro-rata share of partnership income and expenses shall:

(1) Not include such items in their business profits tax returns; and

(2) Follow the provisions of Rev 307.03(b) in reporting such income for state tax purposes.

(d) Proprietorship business organizations required to pay estimated taxes, as provided in RSA 77-A:6, II, shall complete and file Form NH-1040-ES "Estimated Proprietorship Business Tax" quarterly payment form with payment on or before the 15th day of the fourth, sixth, ninth, and twelfth months of the taxable period to which they relate.

(e) Spouses jointly owning rental property shall:

(1) Be presumed to be a single proprietorship subject to the minimum filing requirement provided in RSA 77-A:6, I; and

(2) Divide the income derived from such property among more than one proprietorship for purposes of determining the filing requirements if they can demonstrate to the department, by a preponderance of the evidence, that more than one separate and distinct proprietorship exists.

(f) Single member limited liability companies required to file a proprietorship business profits tax return under Rev 307.01(g)(2) shall attach a clear and legible copy of the individual federal income tax schedules referred to in (a)(2) above, relating to the single member limited liability company and detailed schedules supporting totals included on any specific line of such federal schedule.

(g) When a taxpayer dies during the tax year, or during the filing period following the end of the tax year but before the tax return has been filed, a return shall be completed and filed:

(1) By the executor, administrator, or the person who succeeds to ownership of the entity filing the proprietorship return; and

(2) Accompanied by a completed Form NH-1310, "Statement of Claimant to Refund Due a Deceased Taxpayer" if a refund is due a deceased taxpayer.

N.H. Code Admin. R. Rev 307.04

#2012, eff 5-5-82; ss by #2722, eff 5-23-84; ss by #4192, eff 12-23-86; ss by #5490, eff 10-19-92; amd by #6675, eff 1-27-98; 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.