Hawaii Capital Gains & Losses (Form N-20) (Rev. 2016)

Capital Gains & Losses (Form N-20) (Rev. 2016)
Schedule D Form N-20 Rev 2022 Capital Gains and Losses
Clear Form

SCHEDULE D
FORM N-20
(REV. 2023)

STATE OF HAWAII—DEPARTMENT OF TAXATION

Capital Gains and Losses
To be filed with Form N-20

Name of Partnership	

	
	
	

Part I

2023

N20SCHD_I 2023A 01 VID01

Federal Employer I.D. No.

Short-Term Capital Gains and Losses — Assets Held 1 Year or Less

(a) Description of property					
(e.g., 100 shares	(b) Date acquired	
(c) Date sold	
(d) Sales price	
(e) Cost or other basis	
(f) Gain or (loss)
of “Z” Co.)	
(month, day, year)	
(month, day, year)	
(See Instructions.)	
(See Instructions.)	
(column (d) minus column (e))

	 1

	 2	 Short-term capital gain from installment sales from federal Form 6252.............................................................................. 	
2
	 3	 Short-term capital gain (loss) from like-kind exchanges from federal Form 8824............................................................... 	
3
	 4	 Partnership’s share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses),
from other partnerships, estates, and trusts......................................................................................................................... 	
4
	 5	 Short-term gain from stock acquired through stock options from qualified high technology businesses............................ 	
5
	 6	 Net short-term capital gain or (loss). Add lines 1 through 5 in column (f). Enter here and on Schedule K (Form N-20),
line 8 or 11............................................................................................................................................................................ 	6

Part II

(	)

 Long-Term Capital Gains and Losses — Assets Held More Than 1 Year

	 7

	 8	 Long-term capital gain from installment sales from federal Form 6252............................................................................... 	
	 9	 Long-term capital gain (loss) from like-kind exchanges from federal Form 8824............................................................... 	
	10	 Partnership’s share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses),
from other partnerships, estates, and trusts......................................................................................................................... 	
	11	 Capital gain distributions...................................................................................................................................................... 	
	12	 Long-term gain from stock acquired through stock options from qualified high technology businesses............................ 	
	13	 Net long-term capital gain or (loss). Add lines 7 through 12 in column (f). Enter here and on Schedule K (Form N-20),
line 9 or 11............................................................................................................................................................................ 	

General Instructions

(Section references are to the Internal Revenue
Code unless Hawaii Revised Statutes (HRS) is
indicated.)

Purpose of Schedule

Use Schedule D (Form N-20) to report the sale or
exchange of capital assets, except capital gains
(losses) that are specially allocated to any partners.
Enter capital gains (losses) specially allocated to the partnership as a partner in other partnerships and from estates and trusts on Schedule D (Form N-20), line 4 or 10, whichever applies. Enter capital gains (losses) of the partnership that are specially allocated to partners directly on line 8, 9, or 11 of Schedule K and K-1
(Form N-20), whichever applies. Do not include
these amounts on Schedule D. See How Income Is Shared Among Partners in the Instructions for Form N-20 for more information.

ty is involuntarily converted because of a casualty or theft, use federal Form 4684, Casualties
and Thefts.
Gain and losses from section 1256 contracts
and straddles are reported on federal Form 6781,
Gains and Losses From Section 1256 Contracts
and Straddles. If there are limited partners, see
section 1256(e)(4) for the limitation on losses
from hedging transactions.
An exchange of business or investment property for property of a like kind is reported on federal Form 8824, Like-Kind Exchanges.
For more information, see federal Publication
544, Sales and Other Dispositions of Assets.

Items for Special Treatment
•	 All income earned and proceeds derived from

General Information

To report sales or exchanges of property other
than capital assets, including the sale or exchange of property used in a trade or business
and involuntary conversions (other than casualties and thefts) see Schedule D-1, Sales of Business Property, and related instructions. If proper-

•	

stock options or stock, including stock issued
through the exercise of stock options or warrants, from a qualified high technology business or from a holding company of a qualified
high technology business by an employee,
officer, or director of the qualified high technology business, or investor who qualifies for
the high technology business investment tax
credit is excluded from income taxes.
Gain from the sale of property (other than
publicly traded stock or securities) for which
any payment is to be received in a tax year

ID NO 01

8
9
10
11
12

(	)

13

after the year of sale, must be reported using
the installment method on federal Form 6252,
Installment Sale Income, unless the partnership elects to report the entire gain in the year
of sale. The partnership should also use federal Form 6252 if it received a payment this
year from a sale made in an earlier year on
the installment method.
If the partnership wants to elect out of the
installment method for installment gain that is
not specially allocated among the partners, it
must report the full amount of the gain on a
timely filed return (including extensions).
If the partnership wants to elect out of the
installment method for installment gain that
is specially allocated among the partners, it
must do the following on a timely filed return
(including extensions):
1.	 For a short-term capital gain, report the
full amount of the gain on Schedule K
(Form N-20), line 8 or 11.
	 For a long-term capital gain, report the
full amount of the gain on Schedule K
(Form N-20), line 9 or 11.
2.	Enter each partner’s share of the full
amount of the gain on Schedule K-1 (Form
N-20), line 8, 9, or 11, whichever applies.
(Continued on next page)
Schedule D Form N-20 (Rev. 2023)

SCHEDULE D
Form N-20
(REV. 2023)		

•	

For other items for special treatment, see the
federal Instructions for Schedule D (Form
1065).
Constructive sales treatment for certain appreciated positions.
Generally, the partnership must recognize gain
(but not loss) on the date it enters into a constructive sale of any appreciated position in stock, a
partnership interest, or certain debt instruments
as if the position were disposed of at fair market
value on that date.
For more details, see the federal Instructions
for Schedule D (Form 1065) and federal Publication 550, Investment Income and Expenses.
Rollover of gain from qualified stock.
If the partnership sold qualified small business
stock it held for more than six months, it may
postpone gain if it purchased other qualified
small business stock during the 60-day period
that began on the date of the sale. The partnership must recognize gain to the extent the sale
proceeds exceed the cost of the replacement
stock. Reduce the basis of the replacement
stock by any postponed gain.
If the partnership chooses to postpone gain,
report the entire gain realized on the sale on line
1 or 7. Directly below the line on which the partnership reported the gain, enter in column (a)
“Section 1045 Rollover” and enter as a (loss) in
column (f) the amount of the postponed gain.
Caution: The partnership also must separately
state the amount of the gain rolled over on qualified stock under section 1045 on Form N-20,
Schedule K, line 11, because each partner must
determine if they qualify for the rollover at the
partner level. Also, the partnership must separately state on that line (and not on Schedule D)
any gain that would qualify for the section 1045
rollover at the partner level instead of the partnership level (because a partner was entitled to purchase replacement stock) and any gain on qualified stock that could qualify for the 50% exclusion
under section 1202.

Specific Instructions
Lines 1 and 7 — Short-Term and
Long-Term Capital Gains and
Losses

If more space is needed, attach a statement.

Columns (b) and (c) — Date
Acquired and Date Sold

Use the trade dates for date acquired and date
sold for stocks and bonds traded on an exchange
or over-the-counter market.

Column (d) — Sales Price

Enter in this column either the gross sales price
or the net sales price from the sale. On sales of
stocks and bonds, report the gross amount as reported to the partnership by the partnership’s
broker on federal Form 1099-B, Proceeds From
Broker and Barter Exchange Transactions, or
similar statement. However, if the broker advised
the partnership that gross proceeds (gross sales
price) less commissions and option premiums
were reported to the Department of Taxation, enter that net amount in column (d).

Column (e) — Cost or Other Basis

In general, the cost or other basis is the cost of
the property plus purchase commissions and improvements and minus depreciation, amortization, and depletion. If the partnership received
the property in a tax-free exchange, involuntary
conversion, or wash sale of stock, it may not be
able to use the actual cash cost as the basis. If
the partnership does not use cash cost, attach an
explanation of the basis.
When selling stock, adjust the basis by subtracting all the stock-related nontaxable distributions received before the sale. This includes
nontaxable distributions from utility company
stock and mutual funds. Also adjust the basis for
any stock splits or stock dividends.
If a charitable contribution deduction is
passed through to a partner because of a sale
of property to a charitable organization, the adjusted basis for determining gain from the sale is
an amount that has the same ratio to the adjusted basis as the amount realized has to the fair
market value.
See section 852(f) for the treatment of certain
load charges incurred in acquiring stock in a mutual fund with a reinvestment right.
If the gross sale price is reported in column
(d), increase the cost or other basis by any expense of sale, such as broker’s fees, commissions, or option premiums, before making an entry in column (e).
For more information, see federal Publication
551, Basis of Assets.

Page 2

Column (f) — Gain or (Loss)

Make a separate entry in this column for each
transaction reported on lines 1 and 7 and any
other line(s) that applies to the partnership. For
lines 1 and 7, subtract the amount in column (e)
from the amount in column (d). Enter negative
amounts in parentheses.

Lines 4 and 10 — Capital Gains and
Losses From Other Partnerships,
Estates, and Trusts

See the Schedule K-1 or other information supplied to you by the other partnership, estate, or
trust.

Lines 5 and 12 — Short-Term and
Long-Term Capital Gains From
Stock Acquired Through Stock
Options From Qualified High
Technology Businesses

All income earned and proceeds derived from
stock options or stock, including stock issued
through the exercise of stock options or warrants,
from a qualified high technology business or from
a holding company of a qualified high technology
business by an employee, officer, or director of
the qualified high technology business, or investor who qualifies for the high technology business
investment tax credit is excluded from income
taxes.
Use lines 5 and 12 to reduce the partnership’s
capital gain for these amounts reported on other
lines of Schedule D.

Line 11 — Capital Gain Distributions
On line 11, column (f), report as capital gain distributions (a) capital gain dividends and (b) the
partnership’s share of undistributed capital gains
from a regulated investment company or real estate investment trust (REIT). Report the partnership’s share of Hawaii income taxes paid on undistributed capital gains by a regulated investment company or REIT on a statement attached
to Form N-20 for Schedule K, line 31, and on
Schedule K-1, line 37.