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Maine vs NH

I am a year-round Maine resident; and I rent out a property in NH (as a sole proprietor).

I am subject to the NH Business Profits Tax, but I can take an adjustment on my Maine personal income tax for that.

In the data on the Maine tax form, in addition to the amount of NH tax liability, is also a question as to the amount of income that NH is taxing.

NH is taxing me on the net income as reported on Federal Schedule E; but also allows a minimum deduction of $6,000 for "salary" which is not allowed on the Schedule E.

So on the Maine tax form, for the income being taxed by NH, do I enter the net income as reported on Schedule E, or do I reduce that by the $6,000?

Thank you.

Reply to
Ron Rosenfeld
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proprietor).

my Maine personal income tax for that.

liability, is also a question as to the amount of income that NH is taxing.

allows a minimum deduction of $6,000 for "salary" which is not allowed on the Schedule E.

income as reported on Schedule E, or do I reduce that by the $6,000?

It is the amount of income that contributes to your Maine AGI. Effectively, it is the rental net income contributing to your federal AGI less any rental adjustments required by Maine law. The only adjustments to Maine AGI for rentals can be found on Schedule 1 Line 1e and Line 2j.

Reply to
Alan

proprietor).

my Maine personal income tax for that.

liability, is also a question as to the amount of income that NH is taxing.

allows a minimum deduction of $6,000 for "salary" which is not allowed on the Schedule E.

net income as reported on Schedule E, or do I reduce that by the $6,000?

Thank you.

Reply to
Ron Rosenfeld

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