Haw. Code R. § 18-235-4-07 - Resident and nonresident partners of a partnership

(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.

Notes

Haw. Code R. § 18-235-4-07

[Eff 2/16/82; am and ren § 18-235-4-07 9/3/94] (Auth: HRS §§ 231-3(9), 235-96, 235-118) (Imp: HRS §§ 235-4, 235-5, 235-7, 235-95)
§ 18-235-4-07 is based substantially on § 18-235-4(e). [Eff 2/16/82; am and ren § 18-235-4-07 9/3/94]