Section Rev 903.04 - Deemed Interest(a) When an amount of property is actually received by a taxpayer and is not classified as interest, but the nature of the transaction, the relatedness of the parties, or both, indicates that the payment of interest was actually intended and was paid, then an amount of interest shall be: (1) Deemed by the department to have been paid; and(2) Calculated at the fair market value, for the money that was loaned based on the facts and circumstances of the specific taxpayer.(b) Interest deemed paid shall include: (1) The difference between the amount received at maturity and the actual purchase price of a discounted bond less any amount previously reported on such bond by the taxpayer;(2) The difference between the discount price paid for a non-interest bearing bond and either: a. The bond's face value if sold at maturity; orb. The amount received upon its sale prior to maturity; and(3) The unpaid interest on bonds paying periodic interest when the bond is sold by the taxpayer between interest payment dates since the selling price includes the earned but unpaid interest.N.H. Admin. Code § Rev 903.04
#4557, eff 12-28-88; ss by #5947, eff 12-29-94; ss by #6321, eff 8-22-96; ss by #8137, eff 8-10-04; ss by #10211, eff 10-24-12