Form N-35 Schedule D "Capital Gains and Losses and Built-In Gains" - Hawaii

What Is Form N-35 Schedule D?

This is a legal form that was released by the Hawaii Department of Taxation - a government authority operating within Hawaii.The document is a supplement to Form N-35, S Corporation Income Tax Return. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on January 1, 2018;
  • The latest edition provided by the Hawaii Department of Taxation;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form N-35 Schedule D by clicking the link below or browse more documents and templates provided by the Hawaii Department of Taxation.

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STATE OF HAWAII—DEPARTMENT OF TAXATION
SCHEDULE D
Capital Gains and Losses and Built-in Gains
2018
FORM N-35
(REV. 2018)
To be filed with Form N-35
Name
Federal Employer I.D. No.
PART I — Short-Term Capital Gains and Losses — Assets Held One Year or Less
a. Kind of property and description
b. Date acquired
c. Date sold
d. Gross sales
e. Cost or other basis,
f. Gain or (loss)
g. Gain or (loss)
(Example: 100 shares of “Z” Co.)
(mo., day, yr.)
(mo., day, yr.)
price
plus expense of sales
(d minus e)
Attributable to Hawaii
1
2 Short-term capital gain from installment sales. (From federal Form 6252.) ...........................................................
2
3 Short-term capital gain or (loss) from like-kind exchanges. (From federal Form 8824.) ........................................
3
4 Short-term capital gain from stock acquired through stock options from qualified high technology businesses ...
4
(
) (
)
5 Add lines 1, 2, 3, and 4. Enter here ......................................................................................................................
5
6 Tax on short-term gain included on line 21 below. (Enter same amount in cols. f and g.) .....................................
6
7 Net short-term capital gain or (loss). Line 5 minus line 6. Enter this amount here and on Form N-35,
7
Schedule K, line 7 or line 10 ..................................................................................................................................
PART II — Long-Term Capital Gains and Losses — Assets Held More Than One Year
8
9 Long-term capital gain from installment sales. (From federal Form 6252.) ...........................................................
9
10 Long-term capital gain or (loss) from like-kind exchanges. (From federal Form 8824.) .........................................
10
11 Capital gain distributions .......................................................................................................................................
11
12 Long-term capital gain from stock acquired through stock options from qualified high technology businesses ....
12
(
) (
)
13 Add lines 8, 9, 10, 11, and 12. Enter here ............................................................................................................
13
14 Tax on long-term gain included on line 21 below. (Enter same amount in cols. f and g.) ......................................
14
15 Net long-term capital gain or (loss). Line 13 minus line 14. Enter this amount here and on
15
Form N-35, Schedule K, line 8 or line 10 ..............................................................................................................
PART III — Built-in Gains Tax (See Instructions before completing this part.)
16 Excess of recognized built-in gains over recognized built-in losses. (See Instructions and attach computation schedule.) .................
16
17 Taxable income. (See Instructions and attach computation schedule.) .................................................................................................
17
18 Net recognized built-in gain—Enter smaller of line 16 or line 17. (See Instructions.) ............................................................................
18
19 IRC section 1374(b)(2) deduction. .........................................................................................................................................................
19
20 Subtract line 19 from line 18. (If zero or less, enter zero here and on line 21.) .....................................................................................
20
21 Enter 6.4% of line 20. Enter here and on Form N-35, page 2, line 22b ................................................................................................
21
Purpose of Schedule
directly assist the shareholders of the corporation in
exchanges, and distributions of property other than
properly reporting such gains for the period.
capital assets, including property used in a trade or
Schedule D (Form N-35) is used by S corpora-
business, involuntary conversions (other than casu-
Generally, if the corporation has net recognized
tions to report sales or exchanges of capital assets
alties or thefts), and gain from the disposition of an
built-in gain as defined in section 1374(d)(2) on as-
and gains on distributions to shareholders of appre-
interest in oil, gas, or geothermal property should be
sets attributable to Hawaii, it is liable for the built-in
ciated assets that are capital assets (hereafter re-
reported on Schedule D-1, Sales of Business Prop-
gains tax. Assets are attributable to Hawaii if they
ferred to as distributions). In addition, this schedule
erty, see the instructions for Schedule D-1. If proper-
are physically located in Hawaii, are used in a Hawaii
is intended to partition the “flow-through” of an S cor-
ty is involuntarily converted because of a casualty or
business, or if, in the case of intangible assets, the
poration’s net capital gain to its shareholders and to
theft, use federal Form 4684, Casualties and Thefts.
S corporation has its commercial domicile in Hawaii.
attribute the gain applicable to Hawaii sources. It will
The tax is figured in Part III of Schedule D. Sales,
Schedule D
Form N-35
ID NO 01
N35SCHD_I 2018A 01 VID01
Clear Form
STATE OF HAWAII—DEPARTMENT OF TAXATION
SCHEDULE D
Capital Gains and Losses and Built-in Gains
2018
FORM N-35
(REV. 2018)
To be filed with Form N-35
Name
Federal Employer I.D. No.
PART I — Short-Term Capital Gains and Losses — Assets Held One Year or Less
a. Kind of property and description
b. Date acquired
c. Date sold
d. Gross sales
e. Cost or other basis,
f. Gain or (loss)
g. Gain or (loss)
(Example: 100 shares of “Z” Co.)
(mo., day, yr.)
(mo., day, yr.)
price
plus expense of sales
(d minus e)
Attributable to Hawaii
1
2 Short-term capital gain from installment sales. (From federal Form 6252.) ...........................................................
2
3 Short-term capital gain or (loss) from like-kind exchanges. (From federal Form 8824.) ........................................
3
4 Short-term capital gain from stock acquired through stock options from qualified high technology businesses ...
4
(
) (
)
5 Add lines 1, 2, 3, and 4. Enter here ......................................................................................................................
5
6 Tax on short-term gain included on line 21 below. (Enter same amount in cols. f and g.) .....................................
6
7 Net short-term capital gain or (loss). Line 5 minus line 6. Enter this amount here and on Form N-35,
7
Schedule K, line 7 or line 10 ..................................................................................................................................
PART II — Long-Term Capital Gains and Losses — Assets Held More Than One Year
8
9 Long-term capital gain from installment sales. (From federal Form 6252.) ...........................................................
9
10 Long-term capital gain or (loss) from like-kind exchanges. (From federal Form 8824.) .........................................
10
11 Capital gain distributions .......................................................................................................................................
11
12 Long-term capital gain from stock acquired through stock options from qualified high technology businesses ....
12
(
) (
)
13 Add lines 8, 9, 10, 11, and 12. Enter here ............................................................................................................
13
14 Tax on long-term gain included on line 21 below. (Enter same amount in cols. f and g.) ......................................
14
15 Net long-term capital gain or (loss). Line 13 minus line 14. Enter this amount here and on
15
Form N-35, Schedule K, line 8 or line 10 ..............................................................................................................
PART III — Built-in Gains Tax (See Instructions before completing this part.)
16 Excess of recognized built-in gains over recognized built-in losses. (See Instructions and attach computation schedule.) .................
16
17 Taxable income. (See Instructions and attach computation schedule.) .................................................................................................
17
18 Net recognized built-in gain—Enter smaller of line 16 or line 17. (See Instructions.) ............................................................................
18
19 IRC section 1374(b)(2) deduction. .........................................................................................................................................................
19
20 Subtract line 19 from line 18. (If zero or less, enter zero here and on line 21.) .....................................................................................
20
21 Enter 6.4% of line 20. Enter here and on Form N-35, page 2, line 22b ................................................................................................
21
Purpose of Schedule
directly assist the shareholders of the corporation in
exchanges, and distributions of property other than
properly reporting such gains for the period.
capital assets, including property used in a trade or
Schedule D (Form N-35) is used by S corpora-
business, involuntary conversions (other than casu-
Generally, if the corporation has net recognized
tions to report sales or exchanges of capital assets
alties or thefts), and gain from the disposition of an
built-in gain as defined in section 1374(d)(2) on as-
and gains on distributions to shareholders of appre-
interest in oil, gas, or geothermal property should be
sets attributable to Hawaii, it is liable for the built-in
ciated assets that are capital assets (hereafter re-
reported on Schedule D-1, Sales of Business Prop-
gains tax. Assets are attributable to Hawaii if they
ferred to as distributions). In addition, this schedule
erty, see the instructions for Schedule D-1. If proper-
are physically located in Hawaii, are used in a Hawaii
is intended to partition the “flow-through” of an S cor-
ty is involuntarily converted because of a casualty or
business, or if, in the case of intangible assets, the
poration’s net capital gain to its shareholders and to
theft, use federal Form 4684, Casualties and Thefts.
S corporation has its commercial domicile in Hawaii.
attribute the gain applicable to Hawaii sources. It will
The tax is figured in Part III of Schedule D. Sales,
Schedule D
Form N-35
ID NO 01
N35SCHD_I 2018A 01 VID01
SCHEDULE D (FORM N-35)
(REV. 2018)
PAGE 2
INSTRUCTIONS
Enter the gain or loss from federal Form 8824
to its basis (or the basis of any other property) in
in column (f) and in column (g) if the property trad-
the hands of a C corporation. See section 1374(d)
Section references are to the Internal Revenue
ed was Hawaii property. Write in the top margin
(8)(A) and (B) for important details and modifica-
Code, unless otherwise noted.
of Schedule D “Like-Kind Exchange” or if the ex-
tions for the latter.
NOTE: The special federal election for capital
change involved a related party, write “Related Par-
Transitional Relief from Built-In Gains
assets acquired in tax years beginning before
ty Like-Kind Exchange.”
Tax
January 1, 2001 (election under section 311 of
Special Rules for the Treatment of
the Taxpayer Relief Act of 1997) was not avail-
See the instructions for federal Schedule D
Certain Gains and Losses
able for Hawaii tax purposes.
(Form 1120S) for a discussion of special transition-
Capital Asset
All income earned and proceeds derived from
al relief from the built-in gains tax for qualified cor-
stock options or stock, including stock issued
porations.
Each item of property the corporation held
through the exercise of stock options or warrants,
Line 16—Enter the amount that would be the tax-
(whether or not connected with its trade or busi-
from a qualified high technology business or from
able income of the corporation for the tax year if
ness) is a capital asset except:
a holding company of a qualified high technology
only recognized built-in gains (including any car-
- Stock in trade or other property included in inven-
business by an employee, officer or director of the
ryover of gain under section 1374(d)(2)(B)) attrib-
tory or held mainly for sale to customers.
qualified high technology business, or investor who
utable to Hawaii and recognized built-in losses
- Accounts or notes receivable acquired in the ordi-
qualifies for the high technology business invest-
attributable to Hawaii were taken into account.
nary course of the trade or business for services
ment tax credit is excluded from income. Sales of
See the instructions for federal Schedule D
rendered or from the sale of stock in trade or oth-
this stock should be reported on line 1 or line 8,
(Form 1120S) for definitions of recognized built-in
er property held mainly for sale to customers.
as appropriate. Total capital gains are then reduced
gain and recognized built-in loss.
by the qualifying capital gains on line 4 or line 12.
- Depreciable or real property used in the trade or
A qualified corporation must show on an attach-
Capital losses on the sale of this stock do not need
business.
ment to Schedule D its total net recognized built-in
to be added back to income.
- Certain copyrights, literary, musical, or artistic
gain attributable to Hawaii and also list separate-
How to Determine the Cost or Other
compositions; letters or memorandums; or similar
ly the gain or loss attributable to Hawaii that is: (1)
property. See section 1221(a)(3).
Basis of the Property
gain or loss from capital assets held six months or
- U.S. Government publications, including the Con-
less and (2) gain or loss from assets for which the
In determining gain or loss, the basis of proper-
gressional Record, that the corporation received
disposition results in ordinary income or loss. A
ty is generally its cost (see section 1012 and related
from the Government, other than by purchase
nonqualified corporation must show on an attach-
regulations). Special rules for determining basis are
at the normal sales price, or that the corporation
ment its total net recognized built-in gain attribut-
provided in sections in subchapters C, K, O, and P
got from another taxpayer who had received it in
able to Hawaii and list separately any capital gain
of the Code. These rules may apply to the corpora-
a similar way, if the corporation’s basis is deter-
or loss and ordinary gain or loss.
tion on the receipt of certain distributions with re-
mined by reference to the previous owner.
Line 17—Figure taxable income by completing
spect to stock (section 301), liquidation of another
- Certain commodities derivative financial instru-
lines 1 through 10 and 1 through 12 of Schedule J
corporation (section 334), transfer to another cor-
ments held by a dealer. See section 1221(a)(6).
of Form N-30, Hawaii Corporation Income Tax Re-
poration (section 358), transfer from a sharehold-
- Certain hedging transactions entered into in the
turn. Enter the amount from Schedule J, line 12 that
er or reorganization (section 362), bequest (section
normal course of the trade or business. See sec-
is attributable to Hawaii on line 17 of Schedule D.
1014), contribution or gift (section 1015), tax-free
tion 1221(a)(7).
Attach to Schedule D the Form N-30 computation
exchange (section 1031), involuntary conversion
or other worksheet used to figure taxable income.
(section 1033), certain asset acquisitions (section
- Supplies regularly used in the trade or business.
Line 18—Do not enter on line 18 more than the ex-
1060), or wash sale of stock (section 1091). Attach
Parts I and II
an explanation if you use a basis other than actual
cess (if any) of the net unrealized built-in gain at-
cash cost of the property.
tributable to Hawaii over the net recognized built-in
Generally, report sales and exchanges (includ-
gain attributable to Hawaii for prior years. This is
If the corporation is allowed a charitable con-
ing like-kind exchanges) even if there is no gain or
the amount that should have been entered in item
tribution deduction because it sold property to a
loss. In Part I, report the sale, exchange, or distri-
7, Schedule B, on Form N-35, page 2. See section
charitable organization, figure the adjusted basis
bution of capital assets held one year or less. In
1374(c)(2). If, for any tax year, the amount on line
for determining gain from the sale by dividing the
Part II, report the sale, exchange, or distribution of
16 exceeds the taxable income on line 17, the ex-
amount realized by the fair market value and multi-
capital assets held more than one year. Use the
cess is treated as a recognized built-in gain attrib-
plying that result by the adjusted basis.
trade dates for the dates of acquisition and sale
utable to Hawaii in the succeeding tax year. This
of stocks and bonds on an exchange or over-the-
See section 852(f) for the treatment of certain
carryover provision applies only in the case of an
counter market.
load charges incurred in acquiring stock in a mutu-
S corporation that made its election to be an S cor-
al fund with a reinvestment right.
For more information, see federal Publication
poration on or after March 31, 1988. See section
544, Sales and Other Dispositions of Assets.
Before making an entry in column (e), increase
1374(d)(2)(B).
Exchange of like-kind property.—Complete
the cost or other basis by any expense of sale, such
Line 19—Enter the section 1374(b)(2) deduction.
as broker’s fees, commissions, option premiums,
and attach federal Form 8824, Like-Kind Exchang-
Generally, this is any net operating loss carryfor-
and state and local transfer taxes.
es, to the corporation’s return for each exchange.
ward attributable to Hawaii or capital loss carryfor-
Also, report the exchange of like-kind property on
Part III—Built-In Gains Tax
ward (to the extent of net capital gain included in
Schedule D or on Schedule D-1, whichever applies.
recognized built-in gain for the tax year) attributable
Report it even if no gain or loss is recognized when
Section 1374 provides for a tax on built-in gains
to Hawaii arising in tax years for which the corpo-
business or investment property is exchanged for
recognized during the recognition period and on
ration was a C corporation. For details, see sec-
property of like-kind. For exceptions, see federal
built-in gains attributable to any asset the corpora-
tion 1374(b)(2).
Publication 544.
tion acquired with a basis determined by reference
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