Line-By-Line Instructions For Business Profits Tax Return (Form Nh-1041) Page 2
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NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-1041
BUSINESS PROFITS TAX RETURN
Instructions
LINE-BY-LINE INSTRUCTIONS (continued)
STEP 2
Line 3: NET GAIN (LOSS) FROM SALE OF ASSETS.
(continued)
If you need additional space, please attach a schedule.
(a) & (b) Enter a complete description of the business or rental property sold including the address if the property
sold was real estate. Report the gain or (loss) on the sale without the effects of federal passive loss
limitation rules. If a loss, show in parenthesis, e.g. ($50).
(c)
Enter the total of lines 3(a) and 3(b) on line 3(c).
Line 4: INSTALLMENT GAIN OR (LOSS).
If you need additional space, please attach a schedule.
(a) & (b) Taxpayers who are reporting the sale of business assets on the installment basis for federal tax purposes
must also use the installment method on the Form NH-1041. Under certain conditions, an election can be
made by using Form DP-95 to report the entire gain in the year of sale. Form DP-95 may be obtained by
calling (603) 271-2192.
Taxpayers who have sold business or rental property on the installment basis will be considered a busi-
ness organization until all the installments have been reported and the total tax paid. You MUST file a
return every year, regardless of the amount of installments, if the actual sale price exceeded $6,000 for tax
periods ending prior to July 1, 1981 or $12,000 for tax periods ending July 1, 1981 through June 30, 1993
or $50,000 for tax periods ending July 1, 1993 to the present.
Enter the original date of the sale. Report the installment gain or (loss) received in this tax period without
the effects of federal passive loss limitation rules. If a loss, show in parenthesis, e.g. ($50).
(c)
Enter the total of lines 4(a) and 4(b) on line 4(c).
Line 5: SEPARATE ENTITY ADJUSTMENT.
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. This would include
the fiduciary's share of a partnership's activity in which it is a partner, as reported on lines 1(a) through 4(c).
Attach a schedule detailing this amount.
Line 6: GROSS BUSINESS PROFITS.
Combine lines 1(h), 2(m), 3(c), 4(c) and 5. If a loss, show dollar amount in parenthesis, e.g. ($50). If this
total is negative, this amount represents the fiduciary's net operating loss available for future deduction. A
net operating loss is subject to the carryback and carryforward provisions and apportionment provision
pursuant to RSA 77-A:3, RSA 77-A:4 and Rev 303.03.
Line 7: NH ADDITIONS AND DEDUCTIONS.
(a)
Enter the total NH 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.
(b)
Enter the amount of carryover loss available as shown on line 6 of Form DP-132. 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)
Add the amount of the increase in the basis of assets which was due to the sale or exchange of interest in
the trust (RSA 77-A:4, XIV).
(e)
In the case of a trust or estate which is subject to taxation under RSA 77, enter the amount of interest and
dividends which is taxable or subject to taxation under RSA 77. Interest & Dividends Tax Form DP-10 may
be obtained by calling (603)271-2192.
(f)
Enter the amount of the other additions and deductions required by RSA 77-A:4. (Attach schedule).
(g)
Enter the total of lines 7(a) through 7(f).
Line 8:
ADJUSTED GROSS BUSINESS PROFITS.
Enter the total of line 6 as adjusted by line 7(g). If negative, show in parenthesis, e.g. ($50).
NH-1041
Instructions
Rev. 12/99
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