New Hampshire Combined Business Profits Tax Return Instructions

Combined Business Profits Tax Return Instructions
nh-1120-we-instructions-2022 Draft.pdf
New Hampshire
Department of
Revenue Administration

2023
NH-1120-WE

COMBINED BUSINESS
PROFITS TAX RETURN
GENERAL INSTRUCTIONS

WHO MUST FILE
All business organizations, including corporations, fiduciaries, partnerships, proprietorships, single member limited liability companies (SMLLC), and homeowners'
associations which are part of a group of related business organizations operating a unitary business as defined in RSA 77-A:1, XIV engaged in business activity both
within and without this state regardless of whether such business organizations are required to file a federal income tax return must file Form NH-1120-WE, Combined
Business Profits Tax Return (water's edge) provided they have conducted business activity in New Hampshire and their gross business income from everywhere is in
excess of $103,000 (for taxable periods beginning January 1, 2023) and at least one member of the group has activity outside of New Hampshire.
"Gross business income" means all income for federal income tax purposes from whatever source derived in the conduct of business activity, including but not limited
to gross proceeds from sales, compensation for rendering services, gross proceeds realized from trading in stocks, bonds, or other evidences of indebtedness, gross
proceeds realized from sale of assets used in trade or business, interest, discount, gross rents, royalties, fees, commissions, dividends, without any deduction on
account of the cost of property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense paid or accrued and without
any deduction on account of losses.
GRANTOR TRUSTS: Income from Grantor Trusts (Section 671 of the IRC) shall be included in the Business Profits Tax (BPT) return of the owner(s).

CONFIDENTIAL INFORMATION
Tax information disclosed to the New Hampshire Department of Revenue Administration is held in strict confidence by law. The information may be disclosed to the
United States Internal Revenue Service (IRS), agencies responsible for the administration of taxes in other states in accordance with compacts for the exchange of
information, and as otherwise authorized by RSA 21-J:14.

TAXPAYER IDENTIFICATION
The Commissioner of the Department of Revenue is authorized pursuant to RSA 21:J27-a to require submission of an SSN, FEIN, or any other identifying number used
in filing or preparing federal tax documents. If you do not have any such identifying number, or share one with another taxpayer, then, under N.H. Code of Admin.
Rules, Rev 2903.01, you must obtain a Department Identification Number (DIN). If you have a DIN, use it on all New Hampshire filings. To ensure that your filings and
payments are applied to the correct account, the sequence of names and taxpayer ID numbers on all filings must be consistent. The failure to provide a taxpayer
identification number may result in the rejection of filed documents. Failure to timely file documents complete with a consistent taxpayer identification number may
result in the imposition of penalties and interest, the disallowance of claimed exemptions, exclusions, credits, deductions, or an adjustment that may result in
increased tax liability.

FORMS AND SCHEDULES REQUIRED TO FILE A FORM NH-1120-WE COMBINED BUSINESS PROFITS TAX RETURN
FAILURE TO COMPLETE AND INCLUDE ALL FORMS AND SCHEDULES WITH THE RETURN IS A FAILURE TO FILE.
There are two types of combined returns, those that reflect a U.S. Consolidated return, and those that include corporate and non-corporate members.

TYPE ONE - U.S. CONSOLIDATED GROUP COMBINED RETURN
Completed schedules are required in the following order:
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Form DP-80 Apportionment
If foreign dividends - Schedule ll and Schedule lll MUST BE COMPLETED
Page 1 through Page 4 of NH-1120-WE
NH Additional Information Page
NH Affiliation Schedule
ATTACH COPIES OF ALL U.S. FEDERAL TAX RETURNS REPRESENTED
NH BET Return
NH BET-80-WE
NH BT Summary

TYPE TWO - CORPORATE, PROPRIETORSHIP, PARTNERSHIPS, TRUSTS
This group can include a U.S. Consolidated return, or a mix of any other federal filed returns filed. Completed schedules are required in the following order:
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NH Schedule l-A
If foreign dividends - Schedule ll and Schedule lll
If non-consolidated corporate member - Schedule I-A Line 1
If 1120S member - Form DP-120
If partnership member - Form DP-120-P
If Proprietorship member - Form DP-121 Part One
If LLC member - Form DP-121 Part One
If Joint owned property member - Form DP-121 Part One
If Trust member - Form DP-121 Part Two
Form DP-80 Apportionment
Page 1 through Page 4 of NH-1120-WE
NH Additional Information Page
NH Affiliation Schedule
ATTACH COPIES OF ALL U.S. FEDERAL TAX RETURNS REPRESENTED
NH BET Return
NH BET-80-WE
NH BT Summary

NEED FORMS?
To obtain additional forms, you may visit our website at www.revenue.nh.gov or call the Forms Line at (603) 230-5001.

NEED HELP?
Call the Department of Revenue Administration, Taxpayer Services at (603) 230-5920. Individuals with hearing or speech impairments may call TDD Access: Relay NH
1-800-735-2964.
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New Hampshire
Department of
Revenue Administration

2023
NH-1120-WE

COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS

NAME AND TAXPAYER IDENTIFICATION NUMBER
Enter the principal New Hampshire taxpayer's name and taxpayer identification number in the spaces provided.
Enter the beginning and ending dates of the taxable period.
Page one cannot be completed until all other applicable pages have been completed.
Round every entry to the nearest whole dollar (if 49 cents or less round down, if 50 cents or more round up).
REPORT NEGATIVE AMOUNTS USING A MINUS SIGN.
Form NH-1120-WE is used for combined filing. Consolidated returns are not permitted. The purpose of Schedule I-A is to reconcile the federally reported net income of
non-consolidated members of the combined group to the New Hampshire combined net income of the water's edge group.

LINES 1-9 - TAXABLE INCOME BEFORE NET OPERATING LOSS DEDUCTION AND SPECIAL DEDUCTIONS
LINE 1 - US CONSOLIDATED
Enter the amount as filed with the IRS on the US consolidated return of the principal New Hampshire business organization. Pursuant to Rev 301.25 “Principal New
Hampshire business organization” means an entity designated as the responsible party for filing all returns, declarations, extensions, or other documents required
under the business profits tax on behalf of a combined group. If the group does not include a US consolidated member, start at LINE 5 and file under the Principal New
Hampshire business organization of that group.
Ha
LINE 2 - OVERSEAS BUSINESS ORGANIZATIONS INCLUDED IN LINE 1
Enter the total gross business profits of those business organizations included in the consolidated US federal income tax return which qualify as overseas business
organizations, as defined by RSA 77-A:1, XIX. These business organizations are included in Part F of the Business Profits Tax Affiliation Schedule.
LINE 3 - NON-UNITARY ENTITIES INCLUDED IN LINE 1
Enter the total gross business profits of those entities included in the consolidated US federal income tax return which are not part of the water’s edge combined
group, as defined in RSA 77-A:1, XV. These business organizations are included in Part E of the NH-1120-WE Affiliation Schedule.
LINE 4 - CONSOLIDATING ELIMINATIONS ATTRIBUTABLE TO ENTITIES INCLUDED IN LINE 2 & 3
Enter the total federal consolidating eliminations which are attributable to those entities excluded from the water's edge combined group as either overseas business
organizations or non-unitary affiliates (Line 2 and Line 3).
LINE 5 - NEW HAMPSHIRE UNITARY, NON-CONSOLIDATED MEMBERS FROM SCHEDULE I-A, LINE 7
Enter the total gross business profits of those business organization's including corporations, partnerships, joint ventures, etc., which are part of the water’s edge
combined group but are not part of the consolidated US federal income tax return reported on Line 1. If an amount is entered on this line, NH-1120-WE Schedule
1-A must be completed.
LINE 6 - INTERCOMPANY INCOME (EXPENSE)
Eliminate any intercompany income (expense) between members of New Hampshire water’s edge combined group. Examples would include:
 Income (expense) not eliminated through federal Form 1120 consolidation.
 Income (expense) between the additional unitary members on Line 5 and the other members.
 Income (expense) between New Hampshire water’s edge affiliates on Line 1 and those on Line 5.
Report income as a negative amount and expenses as a positive amount.
LINE 7
Subtotal (Line 1 minus Lines 2 and 3, plus Lines 4 through Line 6)
LINE 8(a)
Enter the income (loss) included in Line 7 which is allowed to be excluded pursuant to federal constitutional law.
LINE 8(b)
Enter the amount of deducted expenses related to the exempt income or loss reported on Line 8 (a).
LINE 9
Subtotal Line 7 adjusted by Lines 8 (a) and 8(b).

LINES 10(a)-10(g) - INCREASE OR DECREASE TO GROSS BUSINESS PROFITS TO RECONCILE TO IRC
These adjustments are necessary to increase or decrease gross business profits to reflect the applicable Internal Revenue Code (IRC) pursuant to RSA 77-A:1, XX and
RSA 77-A:3-b.
Pursuant to RSA 77-A:1, XX, New Hampshire has adopted the IRC as of a particular date for each taxable period. As a result, taxpayers must identify any changes to the
IRC occurring subsequent to the version adopted by New Hampshire, and account for those changes on their return. Taxpayers must also make additional
adjustments as directed by RSA 77-A:3-b.

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Department of
Revenue Administration

2023
NH-1120-WE

COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

APPLICABLE INTERNAL REVENUE CODE
TAXABLE PERIOD - BEGINNING

IRC VERSION IN EFFECT

01/01/2020 - Current

December 31, 2018

01/01/2018 - 12/31/2019

December 31, 2016

01/01/2017 - 12/31/2017

December 31, 2015

01/02/2000 - 12/31/2016

December 31, 2000

For prior taxable periods reference RSA 77-A:1, XX
The adjustments on lines 10(a through 10(g reflect the adjustments that are necessary to account for the version of the IRC adopted by New Hampshire. If a taxpayer
seeks to report a necessary adjustment that has not been specifically addressed, the taxpayer shall enter the item on either line 10(c or 10(e.
The statutory requirement to follow the IRC applicable pursuant to RSA 77-A:1, XX and RSA 77-A:3-b has significant impact on the tax basis of assets used in businesses
operating within New Hampshire, and also within and without New Hampshire. A separate accounting of the New Hampshire tax basis must be maintained for
depreciation purposes and for determination of the gain or loss in the event of the sale of business assets.
LINE 10(a)
Add the amount of IRC §179 expense taken on the federal return in excess of the amount permitted pursuant to RSA 77-A:3-b. For property placed in service on or
after January 1, 2017, the maximum IRC § 179 deduction is $100,000. For property placed in service on or after January 1, 2018, the maximum IRC § 179 deduction is
$500,000.
LINE 10(b)
Add the amount of bonus depreciation taken on the federal return for assets placed in service this period. Bonus depreciation, allowed federally under IRC §168(k, is
not allowed on the NH-BPT return.
LINE 10(c)
Add any other deductions or exclusions taken on the federal return that need to be eliminated or adjusted due to revisions to the IRC occurring subsequent to the
applicable version in the table above. Include foreign dividends, when actually distributed, that consist of amounts previously taxed federally as GILTI under IRC
§951A, or of amounts previously taxed federally as deemed one-time repatriation under the Tax Cuts and Jobs Act of 2017, but not previously subject to Business
Profits Tax. Complete and attach Form Schedule IV.
LINE 10(d)
Deduct the regular depreciation related to IRC §179 and bonus depreciation not allowed for this tax year or for prior tax years. Because there may be a basis difference
due to the federal and state treatment of IRC §179 expense, and bonus depreciation, the regular depreciation allowed under IRC §167 and IRC §168 may be different
than the federal return. Recalculate your allowable depreciation and deduct the difference on this line.
LINE 10(e)
Deduct any other items included on the federal return that are required to be eliminated or adjusted due to revisions to the IRC occurring subsequent to the version
adopted by New Hampshire pursuant to RSA 77-A:1, XX and RSA 77-A:3-b. Also include the deduction allowed for global intangible low-taxed income under RSA 77A:4, XIX. Complete and attach Form Schedule IV.
LINE 10(f)
Increase or decrease the net gain or loss on the sale of assets used in the business which have a state adjusted basis different from the tax adjusted basis reported on
the federal return. Because of the different state tax treatment of IRC §179 expense, and bonus depreciation, the regular depreciation pursuant to IRC §167 and IRC
§168 allowed by New Hampshire may be different than the federal return. This may create a different adjusted basis on the sale of business assets which have not
been completely depreciated resulting in a different gain or loss for state reporting than federal reporting. Recalculate the gain or loss and enter the difference on this
line. Adjustments required to account for the net gain or loss attributable to an increase or step-up in the basis of assets pursuant to RSA 77-A:4, XIV shall be reported
in Section 12(i.
LINE 10(g)
The sum of 10(a) through 10(c), minus Lines 10(d) and 10(e), adjusted by 10(f); if negative, use minus sign in front of the number.

LINES 11(a)-11(e) - COMBINED NET INCOME
LINE 11(a)
Combined Net Income. Enter on Line 11(a, Line 9 adjusted by 10(g. This total represents the combined net income of the water's edge group.
LINE 11(b)
Separate entity adjustments to income or expense, attach a schedule. 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. Do not eliminate investment income on this line, as New
Hampshire requires that all business income be included. New Hampshire does not have a non-business income statute.
LINE 11(c)
Subtotal [Line 11(a) adjusted by Line 11(b)]. If negative, use minus sign [See instructions for Net Operating Loss (NOL) Form DP-132].

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New Hampshire
Department of
Revenue Administration

2023
NH-1120-WE

COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

LINE 11(d)
Deduct Foreign Dividends (Must be the same amount as Schedule II, Line 2 and the total of Column B on Schedule III).
LINE 11(e)
New Hampshire Combined Net Income [Line 1(c adjusted by Line 1(d. If negative, use a minus sign].

LINES 12(a)-12(l), 13, 14, 15, 16, 17, 18, 19, 20, AND 21 - NEW HAMPSHIRE ADDITIONS AND DEDUCTIONS

LINE 12(a)
Deduct interest or dividend income that is subject to taxation under RSA 77. Deduct the amount of Interest and Dividends income reported on the Interest and
Dividends Tax return (Form DP-10 on this line. Partnerships, LLCs, and associations, whose gross interest and dividends do not exceed $2,400 are not subject to the
Interest and Dividends Tax and thus cannot make a deduction on this line. See RSA 77:3, I(b. If the amount of interest and dividends exceeds $2,400, the entity may
be subject to the Interest and Dividends Tax. The application of the term “subject to tax” is not affected by the proportionate amount taxed related to a New
Hampshire inhabitant partner(s). See RSA 77:14-a.
LINE 12(b)
Deduct interest income earned resulting from investments in direct United States obligations. Deduct interest, net of expenses, earned from investments in United
States obligations on this line if issued to secure credit to carry on the necessary functions of government. Exempt U.S. Government interest claimed as a deduction
must be reduced by the following expenses if the expenses were claimed as deductions in arriving at your federal taxable income: interest on money borrowed to
purchase or carry the bonds or securities or ordinary and necessary expenses paid or incurred in connection with producing exempt income. These expenses may also
be added back on Line 12(g). Do not include any amounts already included in Line 12(a).
LINE 12(c)
Deduct reasonable compensation for personal services performed by a proprietor, partner, or member for the business organization, who is a natural person. This
deduction is not available to a corporation or a trust. A partnership or proprietorship whose partner(s or proprietor performs services for the business organization
may take a reasonable compensation deduction on the business organization's NH-BPT return for that service. If the compensation deduction exceeds $75,000, then
the business organization must maintain business records to demonstrate that the deduction is reasonable.
If a business organization was unable to take a reasonable compensation deduction in a prior year(s due to insufficient business profits, the business organization
may adjust this year's compensation deduction to reflect the compensation not deducted in the prior year(s. However, the business organization must maintain
records sufficient to demonstrate that intention.
The amount of the deduction cannot reduce taxable business profits to less than zero.
Reasonable compensation may also include an amount up to 15% of the gross selling price of a business asset less any amount paid to other brokers or agents. This
amount must represent the commissions attributable to the efforts of a partner or proprietor acting as the broker or selling agent as provided in Rev 303.01.
LINE 12(d)
Add net income taxes, franchise taxes measured by net income, or capital stock tax taken on the federal tax return for any state, or political subdivision, or foreign
taxes based on or measured by net income.
The Business Enterprise Tax (BET is not based on or measured by net income and is not added back. Business Profits Tax (BPT is based on net income and must be
added back if a deduction for BPT has been taken of your federal tax return.
LINE 12(e)
In the case of a corporation having adopted a plan of liquidation subsequent to June 30, 1981, which has a non-recognized gain as a result of the application of the
IRC (1954 §337, as amended, or meets the exception requirements allowing the federal non-recognition provisions of §337 as provided in §633 of the Tax Reform Act
of 1986, an addition to gross business profits for the amount of such gain.
LINE 12(f)
Deduct the wage adjustment required by IRC §280C. Deduct the wages or salaries paid or incurred for the taxable year which is equal to the sum of the credits
determined for the taxable year under IRC §45A(a, §51(a, §1396(a, §1400P(b, and §1400R.
LINE 12(g)
Deduct foreign dividend gross-up (IRC § 78. IRC §78 provides that dividends received from foreign affiliates are “grossed-up” to include income taxes paid on the
dividends to foreign countries. The taxpayer can then apply the grossed-up amount in computing its foreign tax credit for federal purposes. The amount of gross-up is
a separately stated item in the federal Form 1120, Schedule C. Qualified dividends do not include IRC §78 amounts. Deduct the gross-up on this line.
LINE 12(h)
Deducted qualified charitable contributions. A deduction is allowed for the contribution of scientific equipment or apparatus to educational organizations or
institutes of higher education 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.
LINE 12(i)
The following adjustments are required to account for the increase in the basis of assets federally due to the sale or exchange of an interest in the business
organization:
LINE 12(i) - A
Report the amount of the increase in the basis of assets federally, attributable to the sale or exchange of an interest in the business organization. If multiple
sales or exchanges, provide an aggregated figure, check the appropriate box(es) below, and attach a schedule of transactions.

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Department of
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COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

CHECKBOX
If making an election pursuant to RSA 77-A:4, XIV(b) to recognize the basis increase for any sale or exchange reported on Line 12(i) - A, check the “Yes” box. If
reporting elections for multiple transactions check the “Yes” box and attach a schedule reporting the details for each transaction.
LINE 12(i) - B
If not making an election pursuant to RSA 77-A:4, XIV(b) to recognize the basis increase for a sale or exchange reported on Line 12(i) - A, deduct the basis
increase associated with the sale(s) or exchange(s) for which an election is NOT being made. If multiple sales or exchanges provide an aggregated figure and
attach a schedule of transactions.
LINE 12(i) - C
Add the amount of depreciation claimed on the federal return that is attributable to an increase in the basis of assets that has not been recognized for NH
purposes pursuant to RSA 77-A:4, XIV(a)(1).
For sales or exchanges occurring on or after January 1, 2016, an entry on this line is required to account for federally reported depreciation attributable to an
increase in the basis of assets attributable to a sale or exchange transaction where an election to recognize the basis increase pursuant to RSA 77-A:4, XIV(b)
was not made in the current taxable period, or a prior taxable period, for the economic life of the asset(s) in question.
For sales or exchanges occurring before January 1, 2016, an entry on this line is required to account for federally reported depreciation attributable to an
increase in the basis of assets attributable to a sale or exchange transaction where an addition to gross business profits was not made in accordance with Rev
303.05, for the economic life of the asset(s) in question.
LINE 12(i) - D
Adjust the gain or loss with respect to the sale of assets to account for an increase in the basis of assets that was not recognized for NH purposes pursuant to
RSA 77-A:4, XIV(a)(2).
For sales or exchanges occurring on or after January 1, 2016, an entry on this line is required to account for federally reported depreciation attributable to an
increase in the basis of assets attributable to a sale or exchange transaction where an election to recognize the basis increase pursuant to RSA 77-A:4, XIV(b)
was not made in the current taxable period, or a prior taxable period, upon the sale or disposition of the asset(s) in question.
For sales or exchanges occurring before January 1, 2016, an entry on this line is required to account for federally reported depreciation attributable to an
increase in the basis of assets attributable to a sale or exchange transaction where an addition to gross business profits was not made in accordance with Rev
303.05, upon the sale or disposition of the asset(s) in question.
Enter the cumulative total of all items and adjustments reported on lines 12(i) - A through 12(i) - D.
LINE 12(j)
Add Qualified Investment Company (QIC) holder's proportional share of QIC profits. Add your share of QIC profits on this line. A business organization which holds an
interest in a QIC must add to gross business profits their share of the QIC profits for the year, losses are not deducted. If the QIC makes a distribution do not include the
distribution in gross business profits of the interest holder.
LINE 12(k)
Deduct assistance payments under 12 U.S.C., § 1823. Deduct assistance payments included on the federal tax form for assistance payments made to insured
depository institutions. The Federal Deposit Insurance Corporation is authorized, in its sole discretion and upon such terms and conditions as the Board of Directors
may prescribe, to make loans to, to make deposits in, to purchase the assets or securities of, and to assume the liabilities.
LINE 12(l)
Combine Lines 12(a) through Line 12(k). If negative, use minus sign in front of the number.
LINE 13
Adjusted Gross Business Profits. Line 11(e) adjusted by Line 12(l). If negative, use minus sign in front of the number.
LINE 14
New Hampshire Apportionment (From DP-80, Line 1(c). Express as a decimal to 6 places. A business organization whose activities do not exceed the protection of P.L.
86-272 shall claim the exemption by checking the box and entering 0.00 on Line 14.
LINE 15
New Hampshire Water's Edge Taxable Business Profits before NOL, Line 13 multiplied by Line 14.
LINE 16
New Hampshire Foreign Dividends (Must be the same amount as Schedule II, Line 3).
LINE 17
Deduct the allowable net operating loss (NOL) carry forward from a prior year. Deduct net operating losses from prior years on this line. New Hampshire has a 10-year
carryforward provision for using losses. No more than $1,000,000 for taxable periods ending 7/1/2005 through 12/31/2012 and $10,000,000 for taxable periods ending
1/1/2013 and after. Losses from each year may be accumulated, but the integrity of each year's loss must be maintained for expiration verification.
The NOL must be apportioned to the taxable period(s) in which the loss occurred to determine the amount of the carry-forward based on the apportionment
determined on the Form DP-80. Form DP-132-WE must be attached for this deduction.
LINE 18
New Hampshire Taxable Business Profits, Line 15 plus Line 16 minus Line 17. If negative, enter zero.
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Department of
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COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

LINE 19
New Hampshire Business Profits Tax (Line 18 x 7.5% (for taxable periods ending on or after December 31, 2023)).
LINE 20(a)
If you have paid the BET in this tax period or have carry over BET credits from the tax period ending on or after December 31, 2014, and have no other credits, enter the
BET credit on Line 20(a), and you must include the Business Enterprise Tax Credit Worksheet, Form BET-CW.
LINE 20(b)
If you have credits in addition to the BET credit, enter the total credits available on this line. Do not also enter BET credits on Line 20(a). Attach a completed Form
DP-160. Schedule of Credits.
LINE 21
New Hampshire Business Profits Tax Net of Statutory Credits (Line 19 minus Line 20(a) or Line 20(b)). The amount cannot be less than zero. Enter the amount from Line
21 on Line 1(b) of the NH BT- Summary Form.

THIS RETURN MUST BE FILED WITH THE NH BT-SUMMARY AND ALL APPLICABLE FEDERAL SCHEDULES.

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Department of
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COMBINED BUSINESS
PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

SCHEDULE I-A - SUMMARY OF COMBINED NET INCOME, NON-CONSOLIDATED MEMBERS
WHO MUST FILE
Combined filers who have non-consolidated members, including but not limited to C corporations, S corporations, partnerships, proprietorships, LLCs and trusts. For
all non-consolidated members of the combined group, with the exception of C corporations, additional forms are required to calculate the net income of each
member, which forms are described below in the line-by-line instructions.
EXAMPLE: The combined group has five members that are S corporations, one Form DP-120 should be used to aggregate the net income of all five S corporations.
LINE 1
Enter the amount from the Federal Form 1120, Line 28 of all non-consolidated corporate members of the combined group. This form should include the sum total of
all non-consolidated corporate members. Attach Federal Form 1120 for each included member.
LINE 2
Enter the amount from Form DP-120, Line 2 for all S-Corporations included in the combined group. Attach Federal Form 1120S for each included member. If more
than one S-Corporation, report the results of all S-Corporations on one single Form DP-120 and include a statement with details of each entity and any inter-group
eliminations.
LINE 3
Enter the amount from Form DP-120-P, Line 2 for all partnerships included in the combined group. Attach Federal Form 1065 for each included member. Do not
include a schedule for any entity whose figures are included in the amount on Line 1. If multiple schedules are needed, submit one form, combining all like entities and
include a statement following the same format as consolidated federal schedules for entity by entity detail.
LINE 4
Enter the amount from Form DP-121, Part One, Line 10 for proprietorships that file on a single Federal Form 1040, which are owned by the same individual, the amount
of net profit or loss from a business, profession, rental, farm activity and gains or losses from the sale of assets held for use in a business activity, that are included in the
combined group. Attach Federal Form 1040, Schedules C, E, F, D, Forms 4835, 4797, and 6252 for each included proprietorship member. Do not include a schedule for
any entity whose figures are included in the amount on Line 1. If multiple schedules are needed, submit one form, combining all like entities and include a statement
following the same format as consolidated federal schedules for entity by entity detail.
LINE 5
Enter the amount from Form DP-121, Part One, Line 10, for any single member limited liability company (SMLLC) owned, by the same individual, that has been
disregarded for federal income tax purposes and has filed as a business, profession, rental, farm activity, or has had gains or losses from the sale of assets held for the
use in a business activity, or reported other income, including interest income reported on Federal Form 1040, Schedule B, related to the business activity disregarded
for Federal income tax reporting purposes as an LLC. All SMLLCs that have been disregarded for federal income tax purposes are considered as a business organization
for Business Profits Tax filing requirements. Attach Federal Form 1040, Schedules B, C, E, F, D, Forms 4835, 4797, and 6252 for each included SMLLC member. Do not
include a schedule for any entity whose figures are included in the amount on Line 1. If multiple schedules are needed, submit one form, combining all like entities and
include a statement following the same format as consolidated federal schedules for entity by entity detail.
LINE 6
Enter the amount from Form DP-121, Part Two, Line 10, for any trust included in the combined group, the amount of net profit or loss from a business, profession,
rental, farm activity and gains or losses from the sale of assets held for use in a business activity, that are included in the combined group. Attach Federal Form 1040,
Schedules B, C, E, F, Forms 4835, 4797, and 6252, and Federal Form 1041 (including Schedule D if applicable) for each included 1041 member. Do not include a
schedule for any entity whose figures are included in the amount on Line 1. If multiple schedules are needed, submit one form, combining all like entities and include a
statement following the same format as consolidated federal schedules for entity by entity detail.
LINE 7
Total the amounts from Lines 1 through 6 and carry the result Form NH-1120-WE, Line 5.

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PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

SCHEDULE II - APPORTIONMENT OF FOREIGN DIVIDENDS
NAME & TAXPAYER IDENTIFICATION NUMBER
The Commissioner of the Department of Revenue is authorized pursuant to RSA 21-J:27-a to require submission of an SSN, FEIN, or any other identifying number used in
filing or preparing federal tax documents. If you do not have any such identifying number, or share one with another taxpayer, then, under N.H. Code of Admin. Rules,
Rev 2903.01, you must obtain a Department Identification Number (DIN). If you have a DIN, use it on all New Hampshire filings. To ensure that your filings and payments
are applied to the correct account, the sequence of names and taxpayer ID numbers on all filings must be consistent. The failure to provide a taxpayer identification
number may result in the rejection of filed documents. Failure to timely file documents complete with a consistent taxpayer identification number may result in the
imposition of penalties and interest, the disallowance of claimed exemptions, exclusions, credits, deductions, or an adjustment that may result in increased tax liability.
Enter the taxpayer's name and taxpayer identification number in the spaces provided.
Enter the beginning and ending dates of the taxable period.
LINES 1(a), 4(a), AND 5(a)
Complete the Form DP-80 and enter the amount of Everywhere and New Hampshire sales, payroll, and property on Lines 1(a), 4(a), and 5(a) respectively on the
NH-1120-WE, Schedule II.
LINES 1(b), 4(b), AND 5(b)
Complete Schedule III. The Foreign Dividend Factor Increments calculated on Schedule III for sales, payroll, and property must be carried to Schedule II as follows: 1.
Enter the total of Schedule III, Column L on Line 1(b). 2. Enter the total of Schedule III, Column M on Line 4 (b). 3. Enter the total of Schedule III, Column N on Line 5(b).
NOTE: The New Hampshire amount for Foreign Dividend Factor Increments will always be zero.
LINES 1(c), 4(c), AND 5(c)
Total Everywhere and New Hampshire sales Line 1(c), payroll Line 4(c), and property Line 5(c) to obtain denominators and numerators for each factor.
Complete the following calculations, as done for Form DP-80, expressed in decimal form to 6 places:
1. Divide the total New Hampshire sales by the adjusted Everywhere sales and enter this amount on Line 1(d). This is the modified apportionment percentage to
be applied to the amount of foreign dividends.
For informational purposes only, complete the following calculations, as done for Form DP-80, expressed in decimal form to 6 places.
1. Divide the total New Hampshire payroll by the adjusted Everywhere payroll to arrive at the adjusted payroll factor and enter this amount on Line 4(d).
2. Divide the total New Hampshire property by the adjusted Everywhere property to arrive at the adjusted property factor and enter this amount on Line 5(d).
LINE 2
Enter the amount of foreign dividends (including Subpart F income and global intangible low-taxed income under Rev 304.12 on Line 2. This amount must agree with
NH-1120-WE, Line 11(d) and the total of Schedule III, Column B.
LINE 3
Multiply Line 2 by the modified apportionment percentage on Line 1(d). This is the New Hampshire Foreign Dividends Taxable Business Profits. Enter this amount on
Line 3 and also on NH-1120-WE, Line 16.

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PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

SCHEDULE III - FOREIGN DIVIDEND FACTOR INCREMENTS
NAME & TAXPAYER IDENTIFICATION NUMBER
The Commissioner of the Department of Revenue is authorized pursuant to RSA 21-J:27-a to require submission of an SSN, FEIN, or any other identifying number used
in filing or preparing federal tax documents. If you do not have any such identifying number, or share one with another taxpayer, then, under N.H. Code of Admin.
Rules, Rev 2903.01, you must obtain a Department Identification Number (DIN). If you have a DIN, use it on all New Hampshire filings. To ensure that your filings and
payments are applied to the correct account, the sequence of names and taxpayer ID numbers on all filings must be consistent. The failure to provide a taxpayer
identification number may result in the rejection of filed documents. Failure to timely file documents complete with a consistent taxpayer identification number may
result in the imposition of penalties and interest, the disallowance of claimed exemptions, exclusions, credits, deductions, or an adjustment that may result in
increased tax liability.
Enter the taxpayer's name and taxpayer identification number in the spaces provided.
Enter the beginning and ending dates of the taxable period.
COLUMN A
List in Column A the unitary foreign dividend payors whose dividends qualify for factor relief, including those from:
 New Hampshire 80/20 business organization as defined in Rev 301.4 as an entity whose income is included in a consolidated US income tax return, but
whose activities are primarily outside the US because 80 percent or more of the average of payroll and property is outside the 50 states and the District of
Columbia.
 Controlled Foreign Corporations (CFC) that meet the payroll and property requirements of an overseas business organization as defined in RSA 77-A:1, XIX.
 IRC §936 Sales Companies that meet the payroll and property requirements of an overseas business organization.
 Foreign Sales Corporation (FSC) that meet the payroll and property requirements of an overseas business organization.
 Business organizations meeting the payroll and property requirements of an overseas business organization, which made deemed dividends to a member of the
unitary group.
FOR EACH UNITARY DIVIDEND PAYOR LISTED ABOVE, PROVIDE THE FOLLOWING INFORMATION IN US DOLLARS:
COLUMN B
Enter the amount of the dividend paid or deemed paid.
COLUMN C
Enter the taxable income computed using US tax standards.
COLUMN D
Enter the result of Column B divided by Column C, expressed in decimal form to 6 places. If this amount is greater than 1, enter 1.000000. If this amount is less than
zero, enter zero.
COLUMN E
Enter the sales and receipts less returns and allowances pursuant to RSA 77-A:3, I(a)(2)(c). Refer to Rev 304.
COLUMN F
Enter the total payroll pursuant to Rev 308.04.
COLUMNS G & H
Enter the beginning and ending property valued at original cost pursuant to Rev 308.04.
COLUMN I
Enter the results of the sum of Column G and Column H divided by 2.
COLUMN J
Enter the valuation of rented property valued at 8 times the net annual rental rate pursuant to Rev 308.04.
COLUMN K
Enter the total of Columns I and J.
COLUMNS L, M & N
Enter the product of Column D multiplied by Columns E, F and K, respectively.
The total of Column L will be used on Schedule II, Line 1(b) to modify the apportionment percentage used to determine the amount of foreign dividends from unitary
sources subject to New Hampshire Business Profits Tax. The totals from Columns M and N will be used on Schedule II, Lines 4(b) and 5(b), for informational purposes
only.
The Combined Group may include non-corporate members. As such, the unitary rules of combination apply. The Forms DP-120, DP-120-P and DP-121 attached to the
NH 1120-WE should reflect the combined totals of the entities represented by these forms.

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PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

DP-120 - SUB-CHAPTER S CORPORATION
Items of income and deductions are reported on a Federal Form 1120S, Schedule K as flow-through items to the shareholders. These instructions explain how Schedule
K amounts will be treated in the computation of Gross Business Profits and reported on NH-1120-WE at the corporate level. This computation is in accordance with RSA
77-A:1, III and Administrative Rule Rev 302.01. The conversion of these items of income and deductions results in taxable income subject to the same limitations under
the IRC as a C corporation. If more than one S-Corporation, report the results of all S-Corporations on one single Form DP-120 and include a statement with details of
each entity and any inter-group eliminations.

LINES 1(a)-1(q), AND 2 - INCOME AND DEDUCTIONS TO DETERMINE 1120S CORPORATION GROSS BUSINESS
PROFITS
Round every entry to the nearest whole dollar (if 49 cents or less round down, if 50 cents or more round up).
LINE 1(a)
Enter Schedule K, Line 1 ordinary business income (loss).
LINE 1(b)
Enter Schedule K, Line 2 net rental real estate income (loss).
LINE 1(c)
Enter Schedule K, Line 3(c) net income (loss) from other rental activities other than those reported on Form 8825. The gain or loss from the sale of an asset used as a
rental as reported on Line 17 of Federal Form 4797 is reflected on Line 1(c).
LINE 1(d)
Enter Schedule K, Line 4 interest income.
LINE 1(e)
Enter Schedule K, Line 5(a) dividend income.
LINE 1(f)
Enter Schedule K, Line 6 royalty income.
LINE 1(g)
Enter the amount of net short-term capital gain reported on Federal Form 1120S, Schedule K, Line 7 less the amount of net long-term.
LINE 1(h)
Enter the amount of net long-term capital gain reported on Federal Form 1120S, Schedule K, Line 8(a), less the amount of net short term capital loss reported on
Federal Form120S, Schedule K, Line 7, but not less than zero.
LINE 1(i)
Enter Schedule K, Line 9 net section 1231 gain or loss from the sale of assets used in the business as reported on Federal Form 4797.
LINE 1(j)
Enter Schedule K, Line 10 any other item of income (loss) not reported above is reported here and includes such items as other portfolio income not reported as
interest, ordinary dividends, royalty, and capital gain (loss) on prior add backs to corporate income on the NH-1120. Cancellation of debt is recognized as income to the
corporation and should also be reported here.
LINE 1(k)
Enter the amount of any other item of income (loss) not reported on Federal Form 1120S, Schedule K, that should be included in gross business profits. Sales of
property for which IRC §179 expense deduction has been passed through to a shareholder should be reported here. Also include global intangible low-taxed income
from controlled foreign corporations owned by the business organization and reported on the returns of the shareholders of the business organization under Treas.
Reg. 1.951A-1(e)(i).
LINE 1(l)
Enter Schedule K, Line 11 Enter IRC §179 expense reported on Federal Form 1120S.
LINE 1(m)
Enter Schedule K, Line 12(a) deductions for charitable contributions to tax exempt organizations by 1120S corporations (must follow the limitations for charitable
contributions followed by C-Corporations).
LINE 1(n)
Enter Schedule K, Line 12(b) investment interest expense related to assets held for investment purposes. This is deductible if the assets or debt is associated with the
production of income for the corporation.
LINE 1(o)
Enter Schedule K, Line 12(c) IRC §59(e)(2) expenditures are deductible on the Form NH-1120.

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PROFITS TAX RETURN
LINE-BY-LINE INSTRUCTIONS
(continued)

LINE 1(p)
Enter Schedule K, Line 12(d) This line includes only business expenses allowed as deductions for BPT adjustment not reported on Schedule K, Lines 12(a),12(b), or 12(c).
New Hampshire does not have any limitations placed on portfolio deductions, thus the 2% limitations to AGI at the shareholder level does not apply to this deduction
for the corporation.
LINE 1(q)
Enter Schedule K, Line 16(f) Deduct the amount of foreign taxes paid or accrued on this line. Foreign taxes deducted on this line would be an add back to income on
NH-1120, Additions and Deductions, Line 6(b), or NH-1120-WE Additions and Deductions Line 12(d).
LINE 2
Combine Lines 1(a) through 1(k) and from the result subtract the sum of Lines 1(l) through 1(q). Report on Form NH-1120-WE, Schedule 1-A, Line 2 or Form NH-1120,
Line 1.

DP-120-P - PARTNERSHIP
Schedule K and Federal Form 1065, Schedule K from each of the partnerships included in this combined group.
Items of income and deductions are reported on a Federal Form 1065, Schedule K as flow-through item to the partners. These instructions explain how Schedule K
amounts will be treated on the NH-1120-WE at the partnership level. If more than one partnership, report the results of all partnerships on one single Form DP-120 and
include a statement with details of each entity and any inter-group eliminations.

LINES 1(a)-1(r), AND 2 - INCOME AND DEDUCTIONS TO DETERMINE PARTNERSHIP GROSS BUSINESS PROFITS
LINE 1(a)
Enter ordinary business income (loss), from Schedule K, Line 1.
LINE 1(b)
Schedule K, Line 2 Rental activity is reported on Line 1(b).
LINE 1(c)
Schedule K, Line 3(c) Other rental income (loss) not from a rental activity not reported on Form 8825. The net income (loss) is reported on Line 1(c). The gain or loss from
the sale of an asset used as a rental is as reported on Line 17 on Federal Form 4797 is also reported on this line.
LINE 1(d)
Schedule K, Line 4(c) Guaranteed payments to partners. This line includes payments for salaries, health insurance, and interest paid to a partner that is deducted by the
partnership, deferred compensation plans are not included here. Some payments may be capital in nature. Generally payments to partners related to passive activities
are not included here. All guaranteed payments are added back on Line 1(d). Payments to partners that are considered business expenses of the partnership may be
deducted as business expenses on the DP-120-P or may be considered as compensation paid based on the reasonable compensation deduction of the partnership
allowed on Line 12(c) of the Form NH-1120-WE.
LINE 1(e)
Schedule K, Line 5 Interest income is related to portfolio investments and is reported on Line 1(e).
LINE 1(f)
Schedule K, Line 6(a) Dividend income is reported on Line 1(f).
LINE 1(g)
Schedule K, Line 7 Royalty income received by the partnership is reported on Line 1(g).
LINE 1(h)
Schedule K, Line 8 Short term capital gain net of losses but not less than zero is reported on Line 1(h).
LINE 1(i)
Schedule K, Line 9(a) Long term capital gains net of losses, but not less than zero, are reported on Line (i).
LINE 1(j)
Schedule K, Line 10 Gains or losses from the sale of assets used in the business (1231 assets) are reported on Line 1(j).
LINE 1(k)
Schedule K, Line 11 Any other item of income not reported above is reported here. Such items as other portfolio income not reported as interest, ordinary dividends,
royalty, and capital gain (loss) on prior add backs to partnership income are reported on Line 1(k). Cancellation of Debt that has been recognized by the partners is
recognized as income to the partnership on Line 1(k). IRC §108, if applicable, may result in non-recognition of debt forgiveness.
LINE 1(l)
Enter the amount of any other item of income (loss) not reported on Federal Form 1065, Schedule K, that should be included in gross business profits.
LINE 1(m)
Schedule K, Line 12 Deduction for the amount IRC §179 reported on Federal Form 1065.
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LINE-BY-LINE INSTRUCTIONS
(continued)

LINE 1(n)
Schedule K, Line 13a. Deductions for contributions to tax exempt organizations by partnerships are based on the limitations placed on individuals by the Internal
Revenue Code. Partnerships are not allowed to deduct contributions unless the contributions are considered business expenses. Report contributions that are business
expenses on Line 1(m). Contributions not deductible as a business expense may be considered as compensation paid based on the reasonable compensation
deduction of the partnership allowed on Line 12(c) of NH-1120-WE.
LINE 1(o)
Schedule K, Line 13b. Investment interest expense relates to assets held by the partnership that are intangible. This is deductible on the BPT if the assets or debt is
associated with the production of income for the partnership. Debt incurred by the partnership for the purpose of distributing the borrowed funds to the partners is
not incurred for the benefit of the partnership and therefore the interest expense related to the debt finances distribution is not a deductible business expense of the
partnership. Report on Line 1(n).
LINE 1(p)
Schedule K, Line 13c(2). IRC §59(e)(2) expenditures are deductible and reported on Line 1(o).
LINE 1(q)
Schedule K, Line 13d. This line includes only business expenses allowed deductions for BPT adjustment not reported on Lines 13a,13b, or 13c. Report these expenses on
Line 1(p). Non allowed expenses are such items as dependent care expenses, charitable contributions, and educational assistance benefits. These disallowed expenses
not deductible as a business expense may be considered as compensation paid based on the reasonable compensation deduction of the partnership allowed on Line
12(c) of Form NH-1120-WE Additions and Deductions.
LINE 1(r)
Schedule K, Line 21 foreign taxes paid or accrued are deductions that have been sourced at the partner level which the state would source back to the partnership.
Foreign taxes paid would be an add back to income (see NH-1120-WE, Line 12(d)).
LINE 2
Combine Lines 1(a) through 1(k) and from the result subtract the sum of Lines 1(l) through 1(r). Report on NH-1120-WE, Schedule 1-A, Line 3.

DP-121 - INSTRUCTIONS
Items of income and deductions reported on Federal Form 1040. If more than one entity, report the results of all specific entity types on one single Form DP-121 and
include a statement with details of each entity and any inter-group eliminations.

PART ONE - PROPRIETORSHIP OR JOINTLY OWNED PROPERTY
The total net profit or loss from all business activities owned by an individual, or jointly owned property with a spouse, reported on a Federal Form 1040; Schedule B, C,
D, E, F, and Forms 4835, 4797, and 6252 that relate to the business activity of a business, profession, rental, or farm including any gain or loss derived from the sale of
assets held or used in the business activity, which are included in this combined group. If more than one proprietorship, report the results of all proprietorships on one
single Form DP-121 and include a statement with details of each entity and any inter-group eliminations.
LINE 1
Items of income and deductions reported on Federal Form 1040. Report the profit or loss from Federal Schedule C, Line 31, if the Federal Form 1040 is a joint return
and more than one Schedule C is on the Federal Form 1040, report only the Schedule Cs that are owned by the same individual. Multiple unitary Federal Schedule C's
should total the net profit or loss of each reporting Schedule C and place the result on Line 1.
LINE 2
Report the net rental profit or loss from Federal Schedule E, Line 21 If the Federal Form 1040 is a joint return and the property is jointly owned, check the Jointly Owned
box at the top of DP-121 and report as a single business activity. Separately owned property must be reported on a NH-1040 by the owner of the property.
LINE 3
Report the net farm rental profit or loss Federal Form 4835, Line 32.
LINE 4
Report the net farm profit or loss Federal Schedule F, Line 34.
LINE 5
Report the net gain or loss from the sale of business assets, Federal Form 4797, Lines 2(g), 3, 5,10(g), 14, 16 and 30.
LINE 6
Report the net gain or loss from sale of investment assets, Federal Schedule D, lines 1(h), 2(h), 3(h), 8(h), 9(h) and 10(h). New Hampshire Statutes determine business
assets as those assets used in a business activity; therefore assets used in a rental activity would be business assets and not investment assets.
LINE 7
Report the installment sale income from the sale of business assets recognized during the period Federal Form 6252, Line 24. Report this amount even if the business
organization has ceased conducting business.

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LINE 8
Report other net business income not reported above, Federal Form 1040, Schedule 1, Line 21 (attach schedule).
LINE 9
This Line is not used by a proprietor.
LINE 10
Gross business profits from individual business activity. Total Lines 1 through 9 and report on NH-1120-WE, Schedule 1A, Line 4.

PART ONE - SINGLE MEMBER LIMITED LIABILITY COMPANY (SMLLC)
New Hampshire does not disregard limited liability companies (LLC); as such, any business activity or separate activities conducted as an LLC or multiple LLCs by an
individual who reports any LLC activity on their Federal Form 1040 must report that activity or activities as separate business organizations. Only one LLC should be
reported on Form DP-121 unless the group of LLCs are owned by the same individual and are part of the combined group.
The total net profit or loss from a business activity created as an SMLLC but reporting as a disregarded entity for Federal tax reporting purposes. Each SMLLC reported
on a Federal Form 1040; Schedule B, C, D, E, F, and Forms 4835, 4797, and 6252 that is owned by the same individual and is part of a combined group may report that
activity on Form DP-121. Each separate LLC must maintain an accounting of the business activities engaged in. Those SMLLCs not part of the combined group must
complete and file a separate NH Business Profits Tax return.
LINE 1
Items of income and deduction of SMLLC reported on Federal Form 1040. Report the profit or loss from Federal Schedule C, Line 31. Multiple unitary Federal Schedule
Cs should total the net profit or loss of each reporting Schedule C. Place the result on Line 1.
LINE 2
Report the net rental profit or loss from Federal Schedule E, Line 21, if the Federal Form 1040 has multiple rental properties, each of which are owned by a different LLC
controlled by the same individual and which is part of the combined group should total the net profit or loss of each rental activity and place the result on Line 2.
LINE 3
If the farm activity is conducted within an SMLLC report the net farm rental profit or loss Federal Form 4835, Line 32 on Line 3.
LINE 4
If the farm activity is conducted within an SMLLC report the net farm profit or loss Federal Schedule F, Line 34.
LINE 5
If the SMLLC sells a business asset, report the net gain or loss from the sale of business assets, Federal Form 4797, Line 2(g), 3, 5,10(g), 14, 16 and 30.
LINE 6
If the SMLLC sells investments assets defined as business assets for New Hampshire Business Profits Tax purposes report the net gain or loss from sale of investment
assets, Federal Schedule D, Part 1, Lines 1(h), 2(h), 3(h), 8(h), 9(h), and 10(h). New Hampshire law defines business assets as those assets used in a business activity,
therefore assets used in a rental activity would be business assets and not investment assets.
LINE 7
If the SMLLC enters into an installment sale, report the installment sale income from the sale of business assets recognized during the period Federal Form 6252, Line
24. Report this amount even if the business organization has ceased conducting business.
LINE 8
Report other net business income not reported above, Federal Form 1040, Line 21 (attach schedule).
LINE 9
Other net business income (attach schedule). For SMLLC Business Income from Federal Form 1040, Schedule B may be considered business income if the investment is
owned by the SMLLC, but is reported by the individual as being disregarded.
LINE 10
Gross business profits from SMLLC business activity. Total Lines 1 through 9 and report on NH-1120-WE, Schedule 1A, Line 5.

PART TWO - TRUST OR ESTATE
Items of income and deductions reported on Federal Form 1041, or other business organization engaging in business activity not reporting elsewhere in this return.
How these items should be treated for NH-1120.
The total net profit or loss from all business activities owned by a trust, reported on a Federal Form 1041, Lines 1 through 9, and related business expenses which may
be reported on lines 10 through 21 and related Federal 1041 Schedules C, D, E, F, and Forms 4797 that relate to a trust or and any net gains derived from the sale of
assets held for use in the business activity, which are included in this combined group. If other business organization engaging in a business activity and have not
reported that activity anywhere else on this tax return, that activity should be reported here.
LINE 1
Report interest income from investments made by the trust related to business activities reported on Federal Form 1041, Line 1.

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LINE 2
Report all dividends received by the trust from investments made by the trust related to business activities reported on Federal Form 1041, Line 2(a).
LINE 3
Report the profit or loss from reported on the Federal Form 1041, Line 3.
LINE 4
If the trust sells investments assets defined as business assets for New Hampshire Business Profits Tax purposes, report the net gain, but not loss, from sale of
investment assets, Federal Form 1041, Line 4. New Hampshire law defines business assets as those assets used in a business activity; therefore assets used in a rental
activity would be business assets and not investment assets. The BPT Statute requires the net amounts of gains be reported, but not losses.
LINE 5
Report the royalties, and net rental profit or loss from Federal Form 1041, Line 5. Do not report partnership estate, or other trust activity, as New Hampshire is a
separate entity State.
LINE 6
Report farm income or loss reported on Federal Form 1041, Line 6.
LINE 7
If the trust sells a business asset, report the net gain only from the sale of business assets, Federal Form 1041, Line 7.
LINE 8
Report other income, related to the trust business activity, reported on Federal Form 1041, Line 8.
LINE 9
Report all other business expenses not reported above related to the production of business income reported on Lines 1, 2 and 8.
LINE 10
Gross business profits from trust business activity. Total Lines 1 through 8 and from the result subtract Line 9. Report on NH-1120-WE, Schedule 1A, Line 6.

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