The NH BPT RCD form is an essential document required by the New Hampshire Department of Revenue Administration for businesses seeking to claim a reasonable compensation deduction. This form not only reports the total compensation deduction for the taxable period but also details the allocation of that deduction among each proprietor, partner, or member who actively contributes to the business. Understanding and completing this form accurately is crucial for compliance and tax reporting, so be sure to fill it out by clicking the button below.
The NH BPT RCD form is an essential document for business organizations in New Hampshire that seek to claim a reasonable compensation deduction. This form, officially known as the Allocation Schedule for Reasonable Compensation Deduction, is required to be attached to the tax return of any business organization that intends to report a compensation deduction for a specific taxable period, including the calendar year 2010. The form serves two main purposes: it outlines the total reasonable compensation deduction claimed by the business and allocates that deduction among the proprietors, partners, or members who actively contribute their time and effort to the business's operations. Key information required on the form includes the business organization's Federal Employer Identification Number (FEIN), Department Identification Number (DIN), and the total compensation claimed for the tax period. Additionally, it necessitates a detailed allocation of the compensation deduction, specifying the name, Social Security Number, and the amount of compensation for each individual involved. This allocation must align with the amounts reported on the NH-1040 or NH-1065 forms. It is crucial that the total compensation claimed does not reduce the business organization’s taxable profits below zero unless it has been paid to the individuals during the taxable period. The form concludes with a declaration, requiring signatures from both the taxpayer and the preparer, affirming the accuracy and completeness of the information provided.
FORM
NH-BPT-RCD
SCHEDULE RCD
NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
ALLOCATION SCHEDULE FOR
REASONABLE COMPENSATION DEDUCTION
For the CALENDAR year 2010 or other taxable period beginning
and ending
Mo Day Year
RSA 77-A:4, III(e) requires this schedule to be attached to the tax return of the business organization claiming a compensation deduction to report:
1)the total reasonable compensation deduction claimed by the business organization for the taxable period; and 2) the amount of such deduction allocated to each proprietor, partner, or member actually devoting time and effort in the operation of the business organization.
BUSINESS ORGANIZATION
FEDERAL EMPLOYER IDENTIFICATION NUMBER (FEIN)
NUMBER & STREET ADDRESS
DEPARTMENT IDENTIFICATION NUMBER (DIN)
ADDRESS (continued)
SOCIAL SECURITY NUMBER (SSN)
CITY/TOWN, STATE & ZIP CODE
Total compensation claimed for this tax period: $
ALLOCATION OF COMPENSATION DEDUCTION CLAIMED (attach additional sheets as necessary)
Name of proprietor, partner or member
Social Security Number
Amount of Compensation
% of Total
Deduction Allocated
1)
$
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
Total
Must be the same as amount on NH-1040, Line 8, or NH-1065, Line 6(i).
If the compensation deduction taken by the business organization reduces the business organization’s taxable business profits below zero for this tax period, the total compensation must be actually paid to the proprietor, partner or member by the business organization in that taxable period.
Under penalties of perjury, I declare that I have examined this document and to the best of my belief the information herein is true, correct and complete. (If prepared by a person other than the taxpayer, this declaration is based on all information of which the preparer has knowledge.)
X
SIGNATURE (IN INK)
DATE
PRINT NAME
TITLE
TELEPHONE NUMBER
SIGNATURE OF PREPARER (IN INK) OTHER THAN TAXPAYER
PRINT PREPARER NAME
PREPARER'S TAX IDENTIFICATION NUMBER
PREPARER'S STREET ADDRESS/PO BOX
PREPARER’S CITY/TOWN, STATE and ZIP CODE+4
[pg 22]
Rev 11/2010
What is the NH BPT RCD form?
The NH BPT RCD form, officially known as the Allocation Schedule for Reasonable Compensation Deduction, is a document required by the New Hampshire Department of Revenue Administration. It must be attached to the tax return of a business organization that is claiming a compensation deduction. This form serves two primary purposes: it reports the total reasonable compensation deduction claimed for the taxable period and allocates the deduction among the proprietors, partners, or members who actively contribute to the business operations.
Who needs to file the NH BPT RCD form?
What information is required on the NH BPT RCD form?
How is the compensation deduction allocated?
What happens if the compensation deduction reduces taxable profits below zero?
What is the significance of the declaration at the end of the form?
Where can I obtain the NH BPT RCD form?
Understanding the NH BPT RCD form is crucial for business organizations in New Hampshire. However, several misconceptions can lead to confusion. Here are five common misunderstandings:
This is not true. If your business organization claims a reasonable compensation deduction, attaching the NH BPT RCD form to your tax return is required by law.
In reality, any business organization, including partnerships and sole proprietorships, that claims a compensation deduction must file the NH BPT RCD form.
On the contrary, the total compensation must reflect the actual amounts paid to each proprietor, partner, or member. This ensures compliance with the law and accurate reporting.
The NH BPT RCD form must be submitted with your tax return for the specific taxable period. Timing is essential to avoid penalties.
This is incorrect. A signature is mandatory, affirming that the information provided is true and complete. Failing to sign can lead to complications with your tax return.
By clearing up these misconceptions, business owners can better navigate the complexities of tax reporting and ensure compliance with New Hampshire's tax laws.
The NH BPT RCD form, which is used for reporting reasonable compensation deductions for business organizations in New Hampshire, shares similarities with several other important tax-related documents. Here are seven forms that are comparable in purpose or function:
Each of these forms serves to provide clarity and accountability regarding compensation and tax obligations within various business structures, ensuring compliance with tax regulations.
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