Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 235 - INCOME TAX LAW
Subchapter 6 - RETURNS AND PAYMENTS; ADMINISTRATION
Section 18-235-110.7-14 - Recapture percentage
Current through November, 2024
(a) The following table determines the recapture percentage.
| Recapture period: If the recovery property or depreciable property ceases to be eligible property within: | The recapture percentage is: |
| (i) One full year after placed in service | 100% |
| (ii) One full year after the close of the period described in clause (i) | 66% |
| (iii) One full year after the close of the period described in clause (ii) | 33% |
| (iv) One full year after the close of the period described in clause (iii), and thereafter | -0- |
(b) Example. Subsection (a) is illustrated as follows:
On June 15, 1989, calendar-year taxpayer A places in service eligible property with a basis of $10,000. The asset is used entirely for business purposes. The amount of credit allowable and taken in taxable year 1989 is $400 ($10,000 x 4%). On June 16, 1991, A sells the asset. In taxable year 1991, A must recapture $132 [[($10,000 x 100% x 4%) - ($10,000 x 0% x 4%)] x 33%] of the previously taken credit. The 33% recapture percentage is based on a recapture period which begins on June 1, 1989 (i.e., the first day of the month within which the eligible property was placed in service), and the date the property ceases to be eligible property (i.e., June 16, 1991).
