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New Hampshire Interest and Dividends Tax
Looking for a NH tax savvy investor. I am purchasing a 7-unit in southern Maine in a Maine LLC and I am a NH resident. NH has 5% "interest and dividends tax" on income derived from I&D ("Tax Free New Hampshire" my ***). From my understanding, income from an LLC is a "dividend" in the eyes of the NH dept of revenue, so any rental income would be subject to the tax. I know that I can get around this with a strategically structured LLC operating agreement. Can anyone tell me if I am interpreting anything incorrectly or otherwise have a solution to minimize the tax liability?