Instructions For Form Nh-1120 - Business Profits Tax Return (Page 2 of 2) in pdf

LINE-BY-LINE INSTRUCTIONS

FORM

(Continued)

NH-1120

Instructions

Line 2:

(continued)

STEP 3

(continued)

(f)

Enter the deduction for any portion of the business organization’s gross business profits which is allowed to be

excluded pursuant to federal constitutional law. This deduction must be net of any expense paid or incurred

that relate to the excluded income portion. Attach a supporting schedule listing the name, FEI number and

amount paid.

(g)

In the case of a corporation which is a participant in a joint venture or a partner in a partnership, enter the amount of

distribution from the joint venture or partnership whose gross business profits have already been subject to taxation

under RSA 77-A during the same or an overlapping fiscal period. Attach a schedule listing the name, FEI number and

amount(s) paid by each joint venture or partnership.

(h)

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

with IRC Section 78.

(i)

In the case of a business organization which makes qualified research contributions as defined in RSA-77 A:1,X, the

gross 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.

(j)

Enter a deduction equal to the contribution made to a Qualified Investment Capital Company the applicable

taxable period.

(k)

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.

(l)

Enter the total of lines 2(a) through 2(k) on line 2(l). Show negative amounts in brackets, e.g. ($50).

Line 3:

ADJUSTED GROSS BUSINESS PROFITS

Enter the total of line 1(c) adjusted by line 2(l). Show negative amounts in brackets, e.g. ($50).

Line 4:

NEW HAMPSHIRE APPORTIONMENT

Corporations which have business activity both within and without this state AND which are subject to income taxes or a franchise

tax measured by net income in another state, whether or not actually imposed by the other state, must apportion their gross

business profits to New Hampshire by using Form DP-80, Apportionment of Income, After completing the Form DP-80, enter the

apportionment percentage on line 4 of your Form NH-1120. Show to six decimal places. All others enter 1.00 on line 4.

Line 5:

Enter the product of line 3 multiplied by line 4. If negative, enter 0.

Line 6:

Enter the product of line 5 multiplied by 7%.

Line 7:

Enter the amount of credits allowed under RSA 77-A:5 as shown on Form DP-160. Form DP-160, Schedule

STEP 4

of Business Profits Tax Credits, must be filed with the return to support all credits claimed on line

Figure Your

Credits

7. Do not include the BET Credit on this line.

Line 8:

Enter the amount of line 6 less line 7.

Line 9:

To calculate the BET credit to be applied against this years BPT, complete the following worksheet.

BET CREDIT WORKSHEET

Tax year ended

A. BET Credit Carryforward Amount. *See note below.

B. Current year BET Liability

LESS

C. Current year BPT Liability

D. Enter the amount of line B less line C.

If NEGATIVE, ENTER O.

E. BET Credit available for a deduction this tax year.

Sum of line A and line B.

F. BET Credit deduction this year. The amount on line F

should be entered on line 9 of NH-1120.

G. BET Credit carryforward Amount. Line E less line F. Carry

this amount forward and indicate on line A under subsequent year.

*NOTE: The line A amount is from line G of the previous year’s BET CREDIT WORKSHEET. If this is the initial year of the BET (Tax Years ending on or after 7-1-93) indicate

Line 10: Enter the lesser amount of line 8 or line 9. If line 9 is greater than line 8, then a “Business Enterprise Tax

Credits” Carryover exists. Any unused portion of the current years credits may be carried forward and

allowed against any Business Profits Tax due for the next 5 taxable periods.

Line 11: Enter the amount of line 8 less line 10. IF NEGATIVE, ENTER O.

ENTER THE AMOUNT FROM LINE 11 ON LINE 1(b) OF THE BUSINESS TAX SUMMARY FORM.

Instructions For Form Nh-1120 - Business Profits Tax Return Page 2

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