DP-121: Non-Consolidation Members of a Combined Group Reconciliation (2024)
New Hampshire · New Hampshire DRA · Used for tax years 2024
New Hampshire Form DP-121 reconciles gross business profits for non-consolidated members of a combined group that report as individuals, proprietorships, or trusts for federal purposes. It combines federal business income, gains, losses, and applicable business expenses into tota
Who files this form
DP-121 is required for business organizations that are members of a combined group and file Federal Form 1040, report as a single-member LLC (SMLLC), or file Federal Form 1041.
The form covers individuals, trusts, and LLCs that file as proprietorships or trusts for federal purposes. It helps convert their federal income information to NH-1040 or NH-1041 amounts.
What you'll need
Have the business organization name, taxpayer identification number, and taxable-period information ready.
For Part One, gather the applicable federal income information from:
- Form 1040, including Schedule 1 and Schedules B, C, D, E, and F.
- Form 4835 for farm rental income.
- Form 4797 for sales of business assets.
- Form 6252 for installment-sale gains from business assets.
For Part Two, use Federal Form 1041, lines 1 through 8, and a schedule of other business expenses not already reported.
Required attachments include:
- A schedule for Part One, line 9, if reporting other net SMLLC business income from Federal Schedule B.
- A schedule for Part Two, line 9, if deducting other business expenses.
- A statement detailing each entity separately, similar to the method used for consolidated federal pages.
How to file
Complete the form for calendar year 2024 or enter the beginning and ending dates of the other taxable period.
- Part One: Check the applicable entity type: proprietorship, SMLLC, or jointly owned property. Enter the listed business income amounts, total lines 1 through 9, and report the total on NH-1120-WE, Schedule I-A, line 4 or 5.
- Part Two: For a trust or estate, enter the listed Federal Form 1041 amounts. Add lines 1 through 8, subtract line 9, and report the result on NH-1120-WE, Schedule I-A, line 6.
- Round amounts to the nearest whole dollar.
- File only one DP-121 combining all applicable entity types reporting as part of the combined returns. Include a statement detailing each entity separately.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Deducting personal expenses: Business expenses are deductible against gross income, but personal expenses are not.
- Using cents: Round amounts to the nearest whole dollar.
- Filing separate forms for each entity: File only one form combining the applicable entity types in the combined returns.
- Leaving out entity details: Include a statement detailing each entity separately.
- Omitting required schedules: Attach a schedule for amounts reported on Part One, line 9, or Part Two, line 9.
Questions people ask
Which part should I complete?
Part One covers proprietorships, SMLLCs, and jointly owned property. Part Two covers trusts and estates.
Should each entity have its own DP-121?
No. File one form combining all applicable entity types reporting as part of the combined returns, with a statement detailing each entity separately.
Can I deduct personal expenses?
No. The form allows expenses that are business in nature, but not expenses that are personal in nature.
Where do I report the final totals?
Report the Part One total on NH-1120-WE, Schedule I-A, line 4 or 5. Report the Part Two total on NH-1120-WE, Schedule I-A, line 6.