New Hampshire Interest and Dividends Tax

4 Replies

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 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.

@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.

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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