Hawaii Shareholder's Share of Income, Credits, Deductions, etc

Shareholder's Share of Income, Credits, Deductions, etc
Schedule K-1 Form N-35 Rev 2022 Shareholder's Share of Income, Credits, Deductions, Etc.
Clear Form
SCHEDULE K-1
FORM N-35
(REV. 2023)

PREPARE IN TRIPLICATE
For EACH Shareholder
Copy 1	
File with N-35
Copy 2	
S Corporation Copy
Copy 3	
Shareholder’s Copy

STATE OF HAWAII — DEPARTMENT OF TAXATION

2023

SHAREHOLDER’S SHARE OF INCOME, CREDITS,
DEDUCTIONS, ETC.
beginning	

For calendar year 2023 or other tax year
, 2023 and ending 	

, 20	
N35SCHK1_I 2023A 01 VID01

Shareholder’s identifying number †	
Shareholder’s name, mailing address, and Postal/ZIP code	

Corporation’s Federal identifying number (FEIN) †
Corporation’s name, mailing address, and Postal/ZIP code

A	 (1) Shareholder’s percentage of stock ownership for tax year † 	
% and (2) Number of shares owned by shareholder at
tax year end †		
(See Instructions for Schedule K-1)
B	 Check applicable boxes: (1)

Final K-1 (2)

Amended K-1

Caution: Refer to Shareholder’s Instructions for Schedule K-1 before entering information from Schedule K-1 on your tax return.
(b) Attributable to
Hawaii

	 1	 Ordinary income (loss) from trade or business activities.............................
	 2	 Net income (loss) from rental real estate activities......................................
	 3	 Net income (loss) from other rental activities...............................................
	 4	 Interest.........................................................................................................
	 5	 Ordinary Dividends......................................................................................
	 6	 Royalties......................................................................................................
	 7	 Net short-term capital gain (loss).................................................................
	 8	 Net long-term capital gain (loss)..................................................................
	 9	 Net section 1231 gain (loss)........................................................................
	 10	 Other income (loss) (attach schedule).........................................................
	 11	 Charitable contributions...............................................................................
	 12	 IRC section 179 expense deduction (attach schedule)................................
	 13	 Deductions related to portfolio income (loss) (attach schedule)..................
	 14	 Other deductions (attach schedule).............................................................
	 15	a	 Interest expense on investment debts....................................................
		
b	 (1)	 Investment income included on lines 4, 5, and 6 above...................
			 (2)	 Investment expense included on line 13 above...............................

Investment
Interest

Deductions

Income (Losses)

(a) Pro rata share items

(c) Attributable
Elsewhere

(d) Form N-11*/ N-15** filers enter
the amounts in col. (b) and col. (c) on:

}	

See Shareholder’s Instructions for
Schedule K-1 (N-35).

Interest Worksheet
Line 9
See Shareholder’s Instructions.
Capital Gain/Loss Worksheet
Capital Gain/Loss Worksheet
Schedule D-1, line 2
(Enter on applicable line of your return)

Worksheet A-4, PY-4, or NR-4
See Shareholder’s Instructions.
Worksheet A-6, PY-6, or NR-6
(Enter on applicable line of your return)

Form N-158, line 1

}

 

See Shareholder’s Instructions for
Schedule K-1 (N-35).

* For Form N-11 filers, if your federal Schedule K-1 (Form 1120S) and Hawaii Schedule K-1 (Form N-35) amounts are different, the necessary
adjustments are to be made in the Hawaii Additions Worksheet and/or Hawaii Subtractions Worksheet in the Form N-11 Instructions.
**For Form N-15 filers, the referenced worksheets are located in the Form N-15 Instructions.
Instructions for Schedule K-1)” in item A is directed are not residents of Hawaii or who are part-year
Purpose of Schedule K-1 — The S corporation
residents of Hawaii are to use amounts attributable
uses Schedule K-1 (Form N-35) to report to you only to the corporation.
to Hawaii and the total sum of amounts attributable
Schedule K-1 does not show the amount of actual
your share of the corporation’s income (reduced by
to Hawaii and amounts attributable elsewhere in
dividend distributions the corporation paid to you.
any tax the corporation paid on the income), credits,
preparing their Hawaii income tax returns. Income
The corporation must report to you such amounts
deductions, etc. Please keep it for your records.
attributable to Hawaii is reported by all shareholdon Form 1099-DIV. Resident shareholders’ actual
Although the corporation is subject to a built-in
ers net of adjustments allowed to corporations. The
dividend distributions are already included in fedgains tax, an excess net passive income tax, and
total of your share of these adjustments is shown
eral
adjusted
gross
income
(federal
AGI)
for
Form
a LIFO recapture tax, you are liable for the income
on line 22a and are explained on line 30. Items of
N-11
filers.
tax on your share of the corporation’s income,
income or deductions should be reported on your
Schedule K-1 now provides you with information rewhether or not distributed, and you must include
return net of these adjustments. Resident sharelating to the source of your share of the income of
your share on your tax return.
holders may make an adjustment to income reportthe S corporation. This is required under provisions
Use these instructions to help you report the items
ed on their net income tax return for interest penalty
shown on Schedule K-1 on your Hawaii income tax of section 235-128, Hawaii Revised Statutes. How
on early withdrawal of savings, if a penalty was imthis
income
is
reported
by
you
to
the
State
of
Hareturn. Where “(attach schedule)” appears on lines
posed on the early withdrawal of savings by the S
waii
depends
on
your
residency
status.
Sharehold10, 12, 13, 14, and 22a, it means the information
corporation and the interest income is not attributers
who
are
Hawaii
residents
are
to
report
the
total
for these lines (if applicable) will be shown on line
able to Hawaii. The amount of this deduction apsum
of
the
income,
deductions,
and
credits
attrib30, or if additional space was needed, the corporapears on line 23.
utable to Hawaii and the income, deductions, and
tion will have attached a statement to your SchedFORM N-35
ule K-1 to show the information. The notation “(See credits attributable elsewhere. Shareholders who
SCHEDULE K-1 (REV. 2023)

ID NO 01

SCHEDULE K-1
(FORM N-35)
(REV. 2023)	

PAGE 2

Credits

(a) Pro rata share items

(b) Attributable
to Hawaii

(c) Attributable
Elsewhere

(d) Form N-11/N-15 filers
enter on:

Form N-163
	 16	a	 Fuel Tax Credit for Commercial Fishers..................................................
Form N-312, Part I
		
b	 Total cost of qualifying property for the Capital Goods Excise Tax Credit	
Form N-756
		
c	 Amounts needed to claim the Enterprise Zone Tax Credit......................   See attached Form N-756A.
Form N-586
		
d	 Hawaii Low-Income Housing Tax Credit.................................................
Form N-884
		
e	 Credit for Employment of Vocational Rehabilitation Referrals................
		
f	 Qualified production costs for the Motion Picture, Digital Media,
Form N-340
	 and Film Production Income Tax Credit..................................................
Form N-330
		
g	 Credit for School Repair and Maintenance.............................................
Form N-342
		
h	 Renewable Energy Technologies Income Tax Credit..............................   See attached Form N-342A.
		
i	 Important Agricultural Land Qualified Agricultural
Form N-344
	 Cost Tax Credit........................................................................................
Form N-346
		
j	 Tax Credit for Research Activities...........................................................
Form N-325
		
k	 Historic Preservation Income Tax Credit ................................................
Form N-360
		
l	 Renewable Fuels Production Tax Credit for Years After 12/31/21..........
Form N-362
		
m	 Pass-Through Entity Tax Credit .............................................................
		
n	 Credit for income tax withheld on Form N-288A (net of refunds)............
		
o	 Credit for Hawaii income tax withheld on Form N-4
See Shareholder’s Instructions
	 (Nonresident shareholders only).............................................................
for Schedule K-1 (Form N-35)
		
p	 Pro rata share of net income tax paid by the S corporation to
	 states which do not recognize the corporation’s “S” status.
	 (Resident and part-year resident shareholders only)..............................
	 17	 Property distributions (including cash) other than dividend distributions
reported to you on federal Form 1099-DIV..................................................
	 18	 Tax exempt interest income.........................................................................
	 19	 Other tax exempt income.............................................................................
	 20	 Nondeductible expenses..............................................................................
See Shareholder’s Instructions
	 21	 Amount of loan repayments for “Loans from Shareholders.”.......................
for Schedule K-1 (Form N-35)
	 22	a	 Corporate adjustments to income attributable to Hawaii
	 (attach schedule)....................................................................................
		
b	 Personal adjustments to income attributable elsewhere.........................
	 23	 Interest penalty on early withdrawal of savings...........................................
	 24	 Recapture of Hawaii Low-Income Housing Tax Credit:
		
a	 From IRC section 42(j)(5) partnerships...................................................
	 Form N-586, Part III
		
b	 Other than on line 24a............................................................................
	 25	 Capital Goods Excise Tax Credit Properties................................................   See attached N-312, Part II.
Form N-312, Part II
	 26	 Recapture of Tax Credit for Flood Victims....................................................
Form N-338
	 27	 Recapture of Important Agricultural Land Qualified Agricultural
Form N-344
Cost Tax Credit............................................................................................
	28	 Recapture of Capital Infrastructure Tax Credit.............................................
Form N-348
	29	 Recapture of Historic Preservation Income Tax Credit................................
Form N-325
	 30	 Supplemental information for lines 10, 12, 13, 14, 22a, or other items and amounts not included in lines 1 through 29 that are required to be reported separately to each shareholder

Recapture of Tax Credits

Other Items

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Supplemental Information

(attach additional schedules if more space is needed):