Hawaii Capital Gains and Losses

Capital Gains and Losses
Schedule D Form N-30/N-70NP Rev 2018 Capital Gains and Losses
Clear Form
	

SCHEDULE D	

	 Form N-30/N-70NP
	
(REV. 2018)	
		

STATE OF HAWAII—DEPARTMENT OF TAXATION

Capital Gains and Losses	

Name	

Federal Employer Identification Number

PART I
	
	
	

20_ _

To be filed with Form N-30 or N-70NP

Short-term Capital Gains and Losses — Assets Held One Year or Less

(a) Description of property	
(Example, 100 shares	
of “Z” Co.)	

(b) Date	
acquired	
(Mo., day, yr.)	

(c) Date		
sold	
(d) Gross sales	
(Mo., day, yr.)	
price	

(e) Cost or other 	
basis, plus expense 	
of sale	

(f) Gain or (loss)
(Col. (d), minus col. (e))

	 1

	 2	 Short-term capital gain from installment sales from federal Form 6252......................................................................... 	
	 3	 Short-term gain or (loss) from like-kind exchanges from federal Form 8824................................................................. 	
	 4	 Corporation’s share of net short-term capital gain (loss), including specially allocated short-term capital gains
(losses), from partnerships, S corporations, estates, and trusts.................................................................................... 	
	 5	 Short-term gain from stock acquired through stock options from qualified high technology businesses....................... 	
	6	 Unused capital loss carryover (attach computation)....................................................................................................... 	
	7	 Net short-term gain or (loss). (Combine lines 1 through 6 in column (f))....................................................................... 	

PART II

2
3
4
5
6
7

(	)
(	)

Long-term Capital Gains and Losses — Assets Held More Than One Year

	 8

	 9	
	10	
	11	
	12	

Enter IRC section 1231 gain from Schedule D-1, line 8 or 10........................................................................................ 	9
Long-term capital gain from installment sales from federal Form 6252.......................................................................... 	
10
Long-term gain or (loss) from like-kind exchanges from federal Form 8824.................................................................. 	11
Corporation’s share of net long-term capital gain (loss), including specially allocated long-term capital gains
(losses), from partnerships, S corporations, estates, and trusts.................................................................................... 	
12
	13	 Long-term gain from stock acquired through stock options from qualified high technology businesses........................ 	
13
	14	 Capital gain distributions (See Instructions)................................................................................................................... 	
14
	15	 Net long-term gain or (loss). (Combine lines 8 through 14 in column (f))....................................................................... 	
15

PART III

(	)

Summary of Schedule D Gains and Losses

	16	 Combine lines 7 and 15.................................................................................................................................................. 	
16
If amount on line 16 is a gain, enter this amount on Form N-30, page 1, line 6(a)
If amount on line 16 is a loss, see instructions on capital losses for explanation of capital loss carryforwards.
	17	 Enter excess of net short-term capital gain (line 7) over net long-term capital loss (line 15)......................................... 	
17
For unitary business taxpayers, enter this amount on Form N-30, Schedule O, line 31(a), as applicable.
	18	 Net capital gain. Enter excess of net long-term capital gain (line 15) over net short-term capital loss (line 7)............. 	
18
If line 6 is zero or a gain, enter amount of gain from line 15. Also enter this amount on Form N-30, Schedule J, line 13.
For unitary business taxpayers, enter the portion of net capital gain wholly attributable to Hawaii on Form N-30, Schedule O,
line 31(b), as applicable.

N30N70NPSCHD_I 2018A 01 VID01

ID NO 01

SCHEDULE D
(FORM N-30/N-70NP)

SCHEDULE D
FORM N-30/N-70NP
(REV. 2018)	

GENERAL INSTRUCTIONS
ATTENTION:
IN 1997, CONGRESS ENACTED LEGISLATION
WHICH MADE NUMEROUS CHANGES TO
THE FEDERAL INCOME TAX LAW RELATING
TO THE CLASSIFICATION AND TAXATION OF
CAPITAL GAINS. HAWAII HAS NOT ADOPTED
ANY OF THESE CHANGES.

Purpose of Form
Schedule D should be used by a taxpayer
who files Form N-30 or Form N-70NP, to report
sales or exchanges of capital assets, gains on
distributions to shareholders of appreciated capital assets, and the corporation’s share of capital
gains and losses from partnerships, S corporations, estates, and trusts. Sales or exchanges
of property other than capital assets, including
property used in a trade or business, involuntary
conversions (other than casualties or thefts), and
gain from the disposition of interest in oil, gas,
or geothermal property, should be reported on
Schedule D-1, Sales of Business Property. See
instructions for Schedule D-1 for more information.
If property is involuntarily converted because
of a casualty or theft, use federal Form 4684, Casualties and Thefts.

Parts I and II
Generally, a corporation should report the
sales and exchanges, including “like-kind” exchanges, even though there is no gain or loss.
No loss is allowed for a wash sale of stock or
securities or from a transaction between related
persons (Internal Revenue Code (IRC) sections
1091 and 267).
In Part I, report the sale or exchange of capital assets held one year or less. In Part II, report
the sale or exchange of capital assets held more
than one year.
Capital Assets. — Each item of property a corporation held (whether or not connected with its
trade or business) is a capital asset except:
1.	 Stock in trade or other property included in
inventory or held mainly for sale to customers.
2.	 Accounts or notes receivable acquired in
the ordinary course of the trade or business for services rendered or from the sale
of stock in trade or other property included
in inventory or held mainly for sale to customers.

PAGE 2
3.	 Depreciable or real property used in the
trade or business, even if it is fully depreciated.
4.	 Certain copyrights; literary, musical or artistic compositions; letters or memoranda; or
similar property.
5.	U.S. Government publications, including
the Congressional Record, received from
the Government, other than by purchase at
the normal sales price, or that the corporation got from another taxpayer who had
received it in a similar way, if the corporation’s basis is determined by reference to
the previous owner’s basis.
6.	Certain commodities derivative financial
instruments held by a dealer not in connection with its dealer activities.
7.	 Certain identified hedging transactions entered into in the normal course of the trade
or business.
8.	Supplies regularly used in the trade or
business.
Exchange of like-kind property. — A like-kind
exchange occurs when the corporation exchanges business or investment property for property
of a like kind. Complete and attach to the tax return federal Form 8824, Like-Kind Exchanges, for
each exchange.
For exchanges of capital assets, enter the gain or
loss from federal Form 8824, if any, on line 3 or
line 11 in column (f).
Lines 4 and 12. — Enter the corporation’s share
of capital gains and losses from partnerships, S
corporations, estates, and trusts. See the Schedule K-1 or other information supplied to the corporation by the partnership, S corporation, estate, or trust.
Line 14. — Enter the total capital gain distributions paid by a regulated investment company
(RIC) or a real estate investment trust (REIT)
during the year, regardless of how long the corporation owned stock in the RIC or REIT. Also
enter any amount received from a RIC or REIT
that qualifies as a distribution in complete liquidation under IRC section 332(b) and is designated
by the RIC or REIT as a capital gain distribution.
See IRC section 332(c).

Special Rules for the Treatment of
Certain Gains and Losses
Note: For more information, get IRS Publication
544, Sales and Other Dispositions of Assets.
  Gains and losses on stock options or warrants from a qualified high technology busi-

ness. — For Hawaii income tax purposes, 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 qualified for the high technology business
investment tax credit is excluded from income.
Use lines 5 and 13 to reduce the corporation’s
capital gain for these amounts reported on other
lines of Schedule D. Losses on sales or dispositions of stock obtained through options or warrants from a qualified high technology business
may be deducted. These losses are not added
back to income.
  For other items for special treatment, see
the federal Instructions for Schedule D (Form
1120).

How to Determine the Cost or Other
Basis of the Property
In determining gain or loss, the basis of property will generally be its cost (IRC section 1012).
The exceptions to the general rule are provided
in sections contained in subchapters C, K, O,
and P of the IRC. For example, if the corporation
acquired the property by dividend, liquidation of
a corporation, transfer from a shareholder, bankruptcy or reorganization, bequest, contribution
or gift, tax-free exchange, involuntary conversion, or wash sale of stock, see IRC sections 301
(or 1059), 334, 362 (or 358), 1014, 1015, 1031,
1033, 1060, and 1091, respectively. Attach an
explanation if the corporation uses a basis other
than actual cash cost of the property.
If the corporation is allowed a charitable contribution deduction because the corporation sold
property to a charitable organization, figure the
adjusted basis for determining gain from the sale
by dividing the amount realized by the fair market
value and multiplying that result by the adjusted
basis.
Capital Losses. — The amount of capital losses
allowed may not be more than capital gains. A net
capital loss may be carried forward 5 years as a
short-term capital loss unless the corporation is a
qualified high technology business, in which case
the loss may be carried forward 15 years. No carryback of the net capital loss is allowed.
At-Risk Limitations (IRC section 465). — If the
corporation sold or exchanged an asset used in
an activity to which the at-risk rules apply, combine the gain or loss on the sale or exchange with
the profit or loss from the activity. If the corporation has a net loss from the activity, it may be
subject to the at-risk rules.