TAX NEWS - JUNE 2010

New Hampshire business tax changes approved by lawmakers

02 June 2010 -- The New Hampshire House and Senate have passed legislation setting the amount state business owners are allowed to deduct for themselves as earnings, before they are taxed on profits.

The bill sets $50,000 as a so-called "safe harbor" as a reasonable compensation business owners can pay themselves without justifying it to state revenue officials. The new rule wouldn't take effect until January.

A federal tax standard would be used to define what business owners can take as earnings.