New Hampshire Code of Administrative Rules
Rev - Department of Revenue Administration
Chapter Rev 900 - INTEREST AND DIVIDENDS TAX
Part Rev 902 - RESIDENCY AND TAXABILITY OF SPECIAL ENTITIES
Section Rev 902.07 - Partnerships, LLCs, Associations and Trust Beneficiaries
Universal Citation: NH Admin Rules Rev 902.07
Current through Register No. 12, March 21, 2024
(a) The interest and dividends tax shall be applied at the:
(1) Entity level for partnerships, LLCs or
associations when:
a.The entity has a usual
place of business within New Hampshire;
b.Any partner, member or owner is an
inhabitant or resident of New Hampshire; and
c.The ownership interest is not represented
by transferable shares;
(2) Owner level for partnerships, LLCs or
associations when:
a.The entity does not have
a usual place of business within New Hampshire;
b.One or more of the partners, members or
owners are inhabitants or residents of New Hampshire; and
c.The ownership interest is not represented
by transferable shares;
(3) Beneficiary level for trusts not treated
as grantor trusts under section 671 of the United States Internal Revenue Code
when:
a.The income received by the trust is
reported by, and taxed federally as interest and dividends to, trust
beneficiaries; and
b.One or more of
the trust beneficiaries are inhabitants or residents of New Hampshire;
or
(4) Grantor level for
trusts treated as grantor trusts under section 671 of the United States
Internal Revenue Code when the grantor is an inhabitant or resident of New
Hampshire.
(b) The amount of taxable interest and dividend income shall be determined as follows:
(1) All interest and dividends received,
which would be taxable if received by a resident individual, shall be taxable
to a partnership, LLC or association if:
a.The beneficial interest of the partnership,
LLC or association is composed of non-transferable shares;
b.The partnership's, LLC's or association's
usual place of business is in New Hampshire; and
c.All of the partnership's, LLC's or
association's interest holders are residents or inhabitants of New
Hampshire;
(2) A
pro-rata portion of the interest and dividends received, which would be taxable
if received by a resident individual, shall be taxable to a partnership, LLC or
association if:
a.The beneficial interest of
the partnership, LLC or association is composed of non-transferable
shares;
b.The partnership's, LLC's
or association's usual place of business is in New Hampshire; and
c.Some of the partnership's, LLC's or
association's interest holders are residents or inhabitants of New
Hampshire;
(3) When a
partnership, LLC or association is not taxable as an entity and it has
beneficial interests composed of non-transferable shares with some interest
holders being residents or inhabitants of New Hampshire, then:
a.The interest and dividend income subject to
tax shall be:
1.Reported by the resident
interest holders; and
2.Imposed on
the portion of the distribution which represents interest or dividends received
by the entity; and
b.The
portion of the distribution that represents interest and dividends shall be
determined by multiplying the amount of the actual distribution received by a
fraction:
1.The numerator of which shall be
the total interest and dividend income received by the entity; and
2.The denominator of which shall be the total
amount of gross income received by the entity; or
(4) For trusts not treated as
grantor trusts under section 671 of the United States Internal Revenue Code
where income received by the trust is reported by, and taxed federally as
interest and dividends to, trust beneficiaries when one or more of the trust
beneficiaries are residents or inhabitants of New Hampshire, then:
a.The interest and dividend income subject to
tax shall be:
1.Reported by the resident
beneficiaries; and
2.Imposed on the
portion of the distribution which represents interest or dividends received by
the trust excluding any deductions used in the computation of the distributive
gross income; and
b.The
portion of the distribution that represents interest and dividends shall be
determined by multiplying the amount of the actual distribution received by a
fraction:
1.The numerator of which shall be
the total interest and dividend income received by the beneficiary;
and
2.The denominator of which
shall be the total amount of gross income received by the
beneficiary.
#4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04 (from Rev 902.06 ); 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
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