Investors & landlords
@jtax I am looking at RSA77:4 based on what is said in Line 2
77:4 What Taxable. – https://www.gencourt.state.nh.us/rsa/html/V/77/77-4.htm
Income of the following described classes is taxable:
I. Interest from bonds, notes, money at interest, and from all debts due the person to be taxed, except interest from notes or bonds of this state and notes or bonds of any political subdivision of this state.
II. Dividends, other than stock dividends paid in new stock of the company issuing the same, on shares in all corporations and joint stock companies organized under the laws of any state, territory, or nation.
III. Dividends, other than stock dividends paid in new stock of the partnership, limited liability company, or association issuing the same, on shares in partnerships, limited liability companies, or associations the beneficial interest in which is represented by transferable shares.
IV. Dividends, other than that portion of a dividend declared by corporations to be a return of capital and considered by the federal internal revenue service to be such, the exemption of which is permitted by RSA 77:7.
V. Amounts reported and taxed federally as dividends or interest to a holder of an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI, a mutual fund, or a unit investment trust.
RSA does not talk about distribution from the profit but only the interest and dividends.
Rev 901.09 “Dividend” means an amount of property distributed, with respect to their ownership interest, other than in liquidation of the organization, to shareholders or interest-holders of an organization from : (a) Current year profit; or (b) Accumulated profits of such entity.
What is confusing to me in the 901.09 is that it specifies only property distribution but not cash distribution but at the end it says current year profit or accumulated profit. My understanding is that property distribution is different from cash distribution.
I am totally confused now between RSA77: 4 and 901.09
