N.H. Admin. Code § Rev 902.09

Current through Register No. 1, January 2, 2025

Section Rev 902.09 - Mixed-Share Organizations

With respect to organizations composed of a mixture of share types, the tax status of such organizations and the holders of equity interests in such organizations, shall be determined as follows:

(a) When the majority of the outstanding equity interest in the organization is composed of transferable shares:

(1) Each share shall be deemed a transferable share;

(2) The organization shall not be subject to tax under RSA 77; and

(3) The distributions of profits to any equity interest holder shall be considered a dividend subject to the interest and dividends tax; or

(b) When the majority of the outstanding equity interest in the organization is composed of non-transferable shares:

(1) Each share shall be deemed a non-transferable share;

(2) The organization shall be subject to tax under RSA 77; and

(3) The distribution of profits to any equity interest holder shall not be considered a dividend subject to the interest and dividends tax.

N.H. Admin. Code § Rev 902.09

#6321, eff 8-22-96; ss by #8137, eff 8-10-04); ss by #9658, eff 2-24-10; ss by #9843, eff 12-23-10 (see Revision Note at chapter heading for Rev 900); ss by #10211, eff 10-24-12