DP-121: Non-Consolidation Members of a Combined Group Reconciliation (2025)
New Hampshire · New Hampshire DRA · Used for tax years 2025
New Hampshire Form DP-121 reconciles gross business profits for non-consolidated members of a combined group that are individuals, trusts, or LLCs filing federally as proprietorships or trusts. It uses federal income, gains, losses, and business expenses to calculate totals repor
Who files this form
For tax year 2025, DP-121 must be completed for business organizations that are members of a combined group and file a federal Form 1040, file as a single-member LLC (SMLLC), or file a federal Form 1041.
The form reconciles gross business profits for individuals, trusts, and LLCs that file as proprietorships or trusts for federal purposes.
What you'll need
Have the business organization name, taxpayer identification number, and taxable period information ready.
For Part One, use the applicable income and gain information from:
- Federal Form 1040, including Schedule 1 and Schedules B, C, D, E, and F.
- Federal Forms 4835, 4797, and 6252.
- An attached schedule for other net business income reported on line 9.
For Part Two, use federal Form 1041, lines 1 through 8. Attach a schedule for other business expenses deducted on line 9.
Include a statement detailing each entity separately, similar to the method used for consolidated federal pages.
How to file
- File only one DP-121 combining all specific entity types reporting as part of the combined returns. Include a statement detailing each entity separately.
- In Part One, check the applicable entity type: jointly owned property, proprietorship, or SMLLC. Total lines 1 through 9 and report the result on NH-1120-WE, Schedule I-A, line 4 or 5.
- In Part Two, for a trust or estate, total lines 1 through 8 and subtract line 9. Report the result on NH-1120-WE, Schedule I-A, line 6.
- Round amounts to the nearest whole dollar.
Common mistakes
- Deducting personal expenses. Business expenses are deductible against gross income, but personal expenses are not.
- Filing separate DP-121 forms for the entities. The form says to file only one form combining all specific entity types reporting as part of the combined returns, with a statement detailing each entity separately.
- Leaving amounts unrounded. Both parts require amounts rounded to the nearest whole dollar.
- Missing required schedules. Attach a schedule for Part One, line 9, or Part Two, line 9, when reporting those items.
Questions people ask
What is DP-121 used for?
It helps convert federal Form 1040, SMLLC, and federal Form 1041 information to NH-1040 or NH-1041 information for business organizations in a combined group.
Which part should I complete?
Part One covers jointly owned property, proprietorships, and SMLLCs. Part Two covers trusts and estates.
Can I deduct personal expenses?
No. The form allows expenses that are business in nature to be deducted against gross income, but not personal expenses.
Do I file a separate form for each entity?
No. File one form combining all specific entity types reporting as part of the combined returns. Include a statement detailing each entity separately.