Form Nh-1120 Instructions - Corporation Business Profits Tax Return

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 NH business tax returns.

Line D

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

Line E

NH requires business organizations that are conducting a unitary business inside and outside NH 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 NH

Combined Business Tax booklet with information, forms and instructions specifically 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

Enter the amount of taxable income or loss before application of the net operating loss deduction or other special

Tax

(a)

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 NH 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 your net operating loss available

(c)

for future deduction. This amount (subject to the carryback and apportionment provisions pursuant to RSA 77-A:3, RSA

77-A:4, and Rev 303.03) represents the organizations net operating loss for future deductions.

Line 2:

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. Do not include the NH 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)

In the case of a corporation which is the parent of an affiliated group (pursuant to IRC Chapter 6), enter the amount of gross

dividends paid to the parent by a subsidiary whose gross business profits have already been subject to taxation under

RSA 77-A during the same period. Attach a schedule listing the name, Federal Employer Identification number and amount

paid by the subsidiary.

(f)

Enter 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, federal employer identification number and amount paid.

(g)

In the case of a corporation which is 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 taxable period. Attach a schedule listing the name, federal employer identification number and

any amount(s) paid by each joint venture or partnership. If amount is a negative number, show in parenthesis, e.g. ($50).

(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-77A: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 during 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 parenthesis, e.g. ($50).

NH-1120

Instructions

Rev. 10/03

Form Nh-1120 Instructions - Corporation Business Profits Tax Return - 2003

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