Business Tax Form - General Instructions For Filing Business Taxes

FORM

NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION

NH-1120

CORPORATION BUSINESS PROFITS TAX RETURN

LINE-BY-LINE INSTRUCTIONS

Instructions

STEP 1

At the top of the return enter the beginning and ending dates of the taxable period if different than the calendar year. Please PRINT

the corporation’s name and Federal Employer Identification Number or Department Identification Number in the spaces provided.

Name &

FEIN

STEP 2

Check “yes” if the corporation files its tax return on an IRS approved 52/53 week tax year.

Line A

Ques-

Line B

Check “yes” if the corporation files with the IRS as part of a federal consolidated return.

tions

Line C

Check “yes” if the corporation is affiliated with any other business organization that files New Hampshire business tax returns.

Line D

Check “yes” if the corporation files as part of a unitary group in any other jurisdiction.

Line E

New Hampshire requires business organizations that are conducting a unitary business inside and outside New Hamp-

shire to file a combined business profits tax return. (A member of the unitary group must be subject to tax in another

jurisdiction.) There is a New Hampshire Combined Business Tax booklet with information, forms and instructions specifi-

cally for combined groups. Combined groups are required to use Form NH-1120-WE which can be obtained from our

web site at or by calling (603) 271-2192.

BONUS DEPRECIATION: Check the box and complete the Corporate Schedule R.

STEP 3

Figure

Line 1:

INCOME

Your

If you checked the bonus depreciation box, Line 5 of the Corporate Schedule R is entered here. If not, enter the amount of

Tax

(a)

taxable income or loss before application of the net operating loss deduction or other special deductions from the federal

corporate tax return (Line 28). “S” Corporations including qualified subchapter “S” subsidiaries are required to complete

Form DP-120, Computation of “S” Corporation Gross Business Profits. Other corporations filing special federal corporate

tax returns must include the income that is comparable to a regular corporation’s taxable income before net operating loss

deduction and special deductions. Corporations who file a consolidated federal return must include the amount which

would have been shown as their taxable income before net operating loss deduction and special deductions if they were

not part of the federal consolidated group and a separate return had been required.

(b)

Enter the amounts which arise from the necessity of adjusting gross business profits to accommodate the New Hampshire

requirement of separate entity treatment for business organizations. Examples are a partner’s share of the partnership

activities reported on the federal corporate tax return (Rev 302.02) or the adjustments required under IRC Section 857(b)

(2) for real estate investment trusts and IRC Section 857(b) (2) for regulated investment companies. Attach a supporting

schedule detailing amount and type of adjustment(s). Enter any passive activity loss disallowed federally under IRC

Section 469. Also enter any amount used to adjust the reported gain or loss on sale of assets which is attributable to an

accumulated passive loss. If the total of this adjustment is a negative amount, then show in parenthesis, e.g. ($50).

Enter the total of Lines 1(a) and Line 1(b). If this total is negative, this amount represents the organizations net operating

(c)

loss available for future deduction may be subject to carryback and apportionment provisions.

Line 2:

ADDITIONS AND DEDUCTIONS

(a)

Enter the total New Hampshire Business Profits Tax and any income tax, franchise tax measured by net income or capital

stock tax assessed by any state or political subdivision that was deducted on this year’s federal return. Attach a schedule

of taxes by state. Do not include the New Hampshire Business Enterprise Tax liability in this amount.

(b)

Enter the amount of carryforward loss available as shown on Line 11 of Form DP-132. Form DP-132 must be attached

to the return.

(c)

Enter the amount of gross business profits as is attributable to income derived from non-taxable interest on notes, bonds

or other direct securities of the United States.

(d)

Enter the amount of the jobs credit (IRC Section 280C) deducted on this year’s federal return.

(e)

Enter the amount of gross business profits that is attributable to foreign dividend gross-ups as determined in accordance

with IRC Section 78.

Expenses paid or incurred that relate to the constitutionally exempt income must be added back

(f)

here.

In the case of a business organization which makes qualified research contributions as defined in RSA77-A:1,X, the gross

(g)

business profits shall be adjusted by: (a) adding to gross business profits the amount deducted under IRC Section 170 in

arriving at federal taxable income; and (b) deducting from gross business profits an amount equal to the sum of the

taxpayer’s basis in the contributed property plus 50 percent of the unrealized appreciation, or twice the basis of the

property, whichever is less.

If the LLC has elected to be taxed as a Corporation and is subject to tax under RSA 77, enter the amount of Interest and

(h)

Dividends included in Line 1(c) which is subject to tax under RSA 77. The amount entered here should be net of any

deduction taken on Line 2(c)

(i)

Enter an addition equal to any return of capital previously taken as a deduction pursuant to RSA 77-A:4, XVII as a capital

contribution to a Qualified Investment Capital Company if such return of capital is received within 3 taxable periods after the

taxable period in which it was deducted.

(j)

Enter the total of Lines 2(a) through 2(i) on Line 2(j). Show negative amounts in parenthesis, e.g. ($50).

NH-1120

Instructions

Rev. 8/25/05

Business Tax Form - General Instructions For Filing Business Taxes - 2003 Page 3

Related Articles

Related forms

Related Categories