New Hampshire Interest and Dividends Tax

Tax, SDIRAs & Cost Segregation
7yFollow

New Hampshire Interest and Dividends Tax

Matt LeonardPro Member
Londonderry, NH · Member since 2015 · 98 posts · 89 votes

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?

0Reply
22 views

4 Replies

Jump to latestLatest
  • Michael Ketchen
    Rental Property Investor · NH · Member since 2016 · 74 posts · 35 votes
    7y
    @Matt Leonard congratulations on the purchase! Our LLC is a NH based LLC and we also own in Maine. My advice is call a CPA as every property and situation is unique. I work with an excellent CPA out of Manchester in the Baker Newman office and would be more than happy to pass along contact.
    0Reply
  • Eamonn McElroy
    Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Matt Faircloth Based on what I'm reading NH taxes distributions from an LLC, not passthrough income.

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    7y

    @Matt Leonard

    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.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    0Reply
  • John Acheson
    Renter · Las Vegas, NV · Member since 2018 · 278 posts · 71 votes
    7y

    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 :)

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free