Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 235 - INCOME TAX LAW
Subchapter 1 - GENERAL PROVISIONS
Section 18-235-4-07 - Resident and nonresident partners of a partnership

Universal Citation: HI Admin Rules 18-235-4-07

Current through August, 2024

(a) A resident partner is subject to tax on the partner's distributive share of the partnership income from whatever source derived.

(b) A nonresident partner is subject to tax on the partner's distributive share of Hawaii source income.

(c) Partners of a partnership shall be subject to tax on their distributive shares of partnership income whether or not the partnership is required to file a return.

(d) A partnership shall determine Hawaii source income by allocation and apportionment under the Uniform Division of Income for Tax Purposes Act, sections 235-21 to 235-39, HRS, if:

(1) The partnership derives income from business activity both within and without the State,

(2) The partnership's business activity is taxable in both this State and another jurisdiction, and

(3) The income is not derived from the rendering of purely personal services.

Otherwise, a partnership shall determine Hawaii source income by allocation and separate accounting pursuant to section 235-5, HRS, and section 18-235-5-02.

(e) A partnership return made pursuant to section 235-95, HRS, shall report the gross income, gains, losses, deductions, and credits from whatever source derived, and each partner's distributive share of those items. The partnership also shall report each partner's distributive share of income, gains, losses, deductions, and credits from sources within the State.

(f) For corporations that are partners of a partnership, see section 18-235-4-05.

Disclaimer: These regulations may not be the most recent version. Hawaii may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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