Looking for a NH tax savvy investor. I am purchasing a 7-unit in southern Maine in a Maine LLC and I am a NH resident. NH has 5% "interest and dividends tax" on income derived from I&D ("Tax Free New Hampshire" my ***). From my understanding, income from an LLC is a "dividend" in the eyes of the NH dept of revenue, so any rental income would be subject to the tax. I know that I can get around this with a strategically structured LLC operating agreement. Can anyone tell me if I am interpreting anything incorrectly or otherwise have a solution to minimize the tax liability?
@Matt Faircloth Based on what I'm reading NH taxes distributions from an LLC, not passthrough income.
Since you are investing in Maine - you may be required to file a maine tax return that report's your rental income/(losses) to the state.
LLC if not taxed like a corporation is a pass-through entity that will flow-through rental income/(losses)(aslong as the LLC doesn't own bonds/stocks/etc that generate interest/dividends) to its members. Which means it should not be included in your NH tax return.
Matt, the billionaires/corporations use off-shore/multiple entities
to minimize income taxes if not pay $0 by deferring/parking.
Millionaires use no-tax states and multiple entities mixed
with small business write-offs and wealth transfer tactics.
Us hustlers always seem to believe a CPA referral is the answer
but I strongly encourage researching 0 zero tax strategies
by thinking big then eliminating what you can't do
then narrowing down some feasible tactics that
YOU CHOOSE, then decide if you need a
GLOBAL CPA firm vs. multi-state firm
vs. one-state licensed CPA, etc.
There are also books on zero taxes
if you want to prepare your own returns :)
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