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FORM

NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION

NH-1041

FIDUCIARY BUSINESS PROFITS TAX RETURN

Instructions

LINE-BY-LINE INSTRUCTIONS

STEP 1: NAME & FEIN

LINE 3: NET GAIN (LOSS) FROM SALE OF ASSETS

At the top of the return enter the beginning and ending dates of the

(a & b) Enter a complete description of the business or rental property

taxable period if different than the calendar year.

sold including the address if the property sold was real estate. Report

the gain (loss) on the sale without the effects of federal passive loss

STEP 2: FIGURE YOUR TAX

limitation rules. If a loss, show in parenthesis, e.g. ($50). If you need

additional space, attach a schedule.

IRC RECONCILIATION: Check the box and complete the appropriate

Schedule R to reconcile federal taxable income to NH taxable income

LINE 4: INSTALLMENT GAIN (LOSS)

based on IRC in effect on December 31, 2000.

LINE 1: INCOME

(a & b)

Taxpayers who are reporting the sale of business assets

on the installment basis for federal tax purposes must also use the

(a) Enter the gross receipts or sales from all business activity

installment method on the Form NH-1041. Under certain conditions,

except rental receipts which should be included on Line 1(f).

an election can be made by using Form DP-95 to report the entire gain

(b) Enter the amount of sales returns and allowances.

in the year of sale. Form DP-95 may be obtained from our web site at

(c)

Line 1(a) minus Line 1(b).

or by calling (603) 271-2192.

(d) Compute your cost of goods sold and/or operations on a

separate schedule showing the beginning inventory, purchases

Taxpayers who have sold business or rental property on the installment

made during the period, labor and other costs associated with

basis will be considered a business organization until all the installments

producing the goods or services and the ending inventory. This

have been reported and the total tax paid. You MUST ﬁ le a return every

schedule must be attached to your return.

year, regardless of the amount of installments, if the sale price exceeded

(e) Line 1(c) minus Line 1(d).

$50,000 for taxable periods ending July 1, 1993 to the present.

(f)

Enter the gross amount received for the rental of property.

Rental expenses must be deducted on Lines 2(a) through 2(l)

Enter the original date of the sale. Report the installment gain or (loss)

and not netted against the gross receipts.

received in this taxable period without the effects of federal passive loss

(g) Enter any other business income received by the estate or trust.

limitation rules. If a loss, show in parenthesis, e.g. ($50). If you need

(h) Combine Lines 1(e) through 1(g).

additional space, attach a schedule.

LINE 2: DEDUCTIONS

(c)

Enter the total of Lines 4(a) and 4(b) on Line 4(c).

LINE 5: SEPARATE ENTITY ADJUSTMENT

(a) Enter the total fees actually paid to the ﬁ duciary for

administering the business activities of the estate or trust during

the taxable period.

Enter the amounts which arise from the necessity of adjusting gross

(b) Enter the total amount of salaries and wages paid or incurred

business proﬁ ts to accommodate the New Hampshire requirement of

for the taxable period relating to business activities, provided

separate entity treatment for business organizations. This would include

they have not been deducted elsewhere in the return.

the estate or trust share of a partnership's activity in which it is a partner,

(c)

Enter the cost of incidental repairs that do not add to the value

as reported on Lines 1(a) through 4(c). Attach a schedule detailing this

of business property or prolong its useful life.

amount.

(d) Enter the business debts that have become worthless during

LINE 6: GROSS BUSINESS PROFITS

the tax year.

(e) Enter the expense incurred to rent space, equipment or other

property used in conducting business activity.

Combine Lines 1(h), 2(m), 3(c), 4(c) and 5. If a loss, show in parenthesis,

(f)

Enter the taxes paid or accrued by the estate or trust except

e.g. ($50). If this total is negative, this amount represents the estate or

federal or foreign income tax or taxes paid by the ﬁ duciary on

trust net operating loss available for future deduction. This amount may

behalf of other parties. To be deductible, the taxes must be

be subject to apportionment provisions.

properly assessed against the trust or estate and be for its

LINE 7: NEW HAMPSHIRE ADDITIONS AND DEDUCTIONS

business activities.

(g) Enter the interest incurred on borrowed funds which have been

used in the business activities reportable under the Business

(a)

Enter the total New Hampshire Business Proﬁ ts Tax and any

Proﬁ ts Tax.

income tax, franchise tax measured by net income or capital stock

(h) Enter the business related charitable contributions made during

tax assessed by any state or political subdivision that was

the taxable period in accordance with the IRC as deﬁ ned by

deducted on this year's federal return. Attach a schedule of taxes

RSA 77-A:1, XX.

by state.

(i)

Enter the depreciation for assets used in business activities

(b)

Enter the amount of carryover loss available as shown on Line 11

reportable under the Business Proﬁ ts Tax. Attach a schedule

of Form DP-132. DP-132 must be attached to the return.

showing the description, cost, previous depreciation taken,

(c)

Enter the amount of gross business proﬁ ts as is attributable to

method and rate of depreciation and the current year amount.

income derived from non-taxable interest on notes, bonds or other

Federal Form 4562 may be used for this purpose.

direct securities of the United States Government.

(j)

Enter the business related expenses for travel or entertainment

(d)

Add the amount of the increase in the basis of assets which was

in accordance with the IRC as deﬁ ned by RSA 77-A:1, XX.

due to the sale or exchange of interest in the trust (RSA 77-A:4,

(k)

Enter the expenses incurred for advertising the business

XIV).

activities of the trust or estate.

(e)

In the case of a trust or estate which is subject to taxation under

(l)

Enter the other ordinary and necessary business expenses not

RSA 77, enter the amount of interest and dividends included in

included in Line 1(d) or Lines 2(a) through 2(k). A schedule

Line 1(g) above attributable to the New Hampshire beneﬁ ciary

showing the type and amount of each deduction must be

pro rata share of any deduction taken on Line 7(g) or subject to

attached to this return.

taxation under RSA 77. Interest & Dividends Tax Form DP-10 may

(m) Combine Lines 2(a) through 2(l).

be obtained by accessing our web site at

or 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).

NH-1041

Instructions

Rev. 09/2008

page

Form Changes - Summary Of Changes & Common Problem Areas/general Instructions For Filing Business Taxes/etc. Page 4

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