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Author Topic: Tax information help  (Read 683 times)

Solar guy

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Tax information help
« on: September 25, 2016, 12:08:32 pm »

Hello,

   My name is George, My wife and I just learned about the Free State Project from Peter Schiff and found more information on youtube, specifically John Stossel and the 101 reasons video.  We are pleasantly surprised to find a libertarian group and a state with more freedoms then most.  (thought we would have to move to Switzerland......... LOL). We have not signed the petition to move as we are just in the research phase but are very interested in a possible move in the next couple of years.  Our primary residence is in NC. 

  We understand, their is no state income tax with the exception of interest and dividends but during our research we found what appears to be several other taxes. This may very well be questions for an accountant or tax expert, I will post our questions but If someone knows an accountant familiar with such, I would like to get their contact information.

   A business profits tax and a business enterprise tax.  We found this on the web:
"The BPT applies to any landlord who rents at least one property in New Hampshire and whose total revenues from rental properties everywhere (inside and outside the state) exceed $50,000 in a year." and "The BET applies if rental revenue earned everywhere in 2015 (derived inside and outside New Hampshire) exceeded $207,000, or if the combination of interest, compensation and dividends paid (collectively known as the “tax base”) exceeded $103,000."

First question: If we become a New Hampshire resident and generated all our rental income out of state and exceeded the $50,000 level would we have to pay NH tax? It would also seem this would prevent us from investing in rental properties in NH?

If we have a business out of state (Medical company) that exceeded the $207,000 tax base and are required to pay the NC income tax regardless of where we lived would we also have to pay a NH tax? 

    Thank you for any information you can help with,  George



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JasonPSorens

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Re: Tax information help
« Reply #1 on: September 25, 2016, 06:53:57 pm »

You should probably talk to a tax accountant, but the text you've posted suggests that if you own no rental properties in NH, you are not subject to the BPT. Also, the BET (to my knowledge) applies only to your NH wage base. If you own a company out of state, BET does not apply. However, if you make dividends from your company, the interest & dividends tax may apply. Again, this is my ordinary understanding of these taxes and should not be taken as gospel.
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"Educate your children, educate yourselves, in the love for the freedom of others, for only in this way will your own freedom not be a gratuitous gift from fate. You will be aware of its worth and will have the courage to defend it." --Joaquim Nabuco (1883), Abolitionism

Solar guy

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Re: Tax information help
« Reply #2 on: September 25, 2016, 07:59:31 pm »

Okay, thanks, Just found the number of the New Hampshire tax authority from a 2013 post on the board. 

    Thanks again.
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Solar guy

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Re: Tax information help
« Reply #3 on: September 26, 2016, 10:37:51 am »

Tax staff are very nice and friendly and answered all my questions.  I will share the answers:

1- BPT tax will not apply to your out of state passive income (rent), However, If that number is at or above $50,000 then anything you do in New Hampshire will be taxed at 8%.  Example, you make $50,000 on rent in Texas, you now bought a property in New Hampshire and make $10,000 on it a year, since you already hit the $50,000 mark (even if its from out of state) you will have to pay the 8% on the $10,000 in New Hampshire, (even though you didn't exceed the $50,000 in NH). the cost to you will be an $800 tax bill on the $10,000.

2-BET tax, If you have a company out of state this does not apply to you as long as all your income comes from outside of NH.  However, if you open a branch in NH and your above the base tax threshold from your out of state business receits, you will now have to pay the BET tax in NH even if you didn't reach the threshold from inside NH.  In reality, you will have to pay the tax since its based on receits even if you lose money on your NH branch.
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JasonPSorens

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Re: Tax information help
« Reply #4 on: September 26, 2016, 06:41:14 pm »

Good to know! More or less what I expected, but good to have some clarity.
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"Educate your children, educate yourselves, in the love for the freedom of others, for only in this way will your own freedom not be a gratuitous gift from fate. You will be aware of its worth and will have the courage to defend it." --Joaquim Nabuco (1883), Abolitionism
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