Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 237 - GENERAL EXCISE TAX LAW
Subchapter 2 - LICENSES; TAX; EXEMPTIONS
Section 18-237-16.5-05 - Allocation - Various real property or space with different rental values; sublease of one hundred percent of the real property or space

Universal Citation: HI Admin Rules 18-237-16.5-05
Current through November, 2023

If the Lessee leases from the Lessor various real property or space which has different rental values and the Lessee subleases the real property or space, the Lessee shall allocate the total amount of gross proceeds or gross income paid by the Lessee for all real property or space based upon the percentage of real property or space leased, or if not reasonable, the fair rental value as determined by factors in section 237-16.5-06 for each real property or space before the Lessee may compute the deduction under section 237-16.5(g), HRS.

Example 9: Lessor L leases real property XYZ, which is divided into spaces X, Y, and Z, to lessee A for $10,000. Space X is fifty percent of the entire real property and spaces Y and Z account for twenty-five percent each of the real property. Lessee A allocates the gross proceeds paid to L based upon the percentage of space leased as follows: Space X ($5,000), Space Y ($2,500), and Space Z ($2,500).

[Eff 10/01/98] (Auth: HRS §§ 231-3(9), 237-8) (Imp: HRS § 237-16.5)

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