If you own rental property or run a business here in New Hampshire, you’ve probably seen the ads:

“File your taxes for free!”

“Fast. Simple. Online.”

“Maximum refund guaranteed!”

It sounds tempting—but here’s the truth: those “free” services often come with hidden costs, missed deductions, and a total lack of accountability when things go wrong. That might be fine for a college student with one W-2. But for a landlord with three units in Claremont? Or a self-employed contractor in Sutton? It’s a different game entirely.

If you own rental property in New Hampshire and file as a sole proprietor, partner, or LLC—not a corporation—you might be missing out on a powerful tax break that most out-of-state CPAs won’t even mention.

We’re talking about a Granite State–only rule called the Personal Compensation Deduction under the New Hampshire Business Profits Tax (BPT). And if you’re not taking full advantage of it, you’re probably overpaying.

Let’s fix that.

I wrote this FAQ because the same questions come up again and again across the Lake Sunapee and Kearsarge region. People want clarity. They want to know what the IRS expects, what New Hampshire actually cares about, and how to avoid surprises.

If you are a landlord, a sole proprietor, or someone juggling self-employment income here in NH, these are the answers you keep wishing someone would give you.