Form N-35 2018 S Corporation Income Tax Return - Hawaii

Form N-35 or the "S Corporation Income Tax Return" is a form issued by the Hawaii Department of Taxation.

The form was last revised in January 1, 2018 and is available for digital filing. Download an up-to-date Form N-35 in PDF-format down below or look it up on the Hawaii Department of Taxation Forms website.

Step-by-step Form 35 instructions can be downloaded by clicking this link.

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Clear Form
STATE OF HAWAII—DEPARTMENT OF TAXATION
THIS SPACE FOR DATE RECEIVED STAMP
FORM
S CORPORATION INCOME TAX RETURN
N-35
2018
(REV. 2018)
For calendar year
or other tax year beginning  __________________ , 2018
and ending  ________________ , 20 ________
AMENDED Return (Attach Sch AMD)
 Federal Employer I.D. No.
Name
Business Activity Code (Use code shown on federal Form 1120S)
Dba or C/O
 Hawaii Tax I.D. No.
Mailing Address (number and street)
City or town, State, and Postal/ZIP Code. If foreign address, see Instructions.
Enter the number of Schedules NS
attached to this return 
Is the corporation electing to be an S corporation beginning with this tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
No
Check if: (1)
Initial Return (2)
Final Return (3)
S Election Termination or Revocation (4)
Name Change (5)
Change of Address (6)
IRS Adjustment
How many months in 2018 was this corporation in operation?_____
Was this corporation in operation at the end of 2018? . .
Yes
No
CAUTION: Include only trade or business income and expenses on lines 1a through 20. See Instructions for more information.
1
a Gross receipts or sales (see Instructions). . . . . . . . . . . . . . . . . . .
1a
b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
c Line 1a minus line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1c
2
2
Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
Gross profit (line 1c minus line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
4
Net gain or (loss) from Schedule D-1, Part II, line 19 (attach Schedule D-1) . . . . . . . . . . . . . . . . . . .
5
5
Other income (see Instructions) (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
6
TOTAL income (loss) — Add lines 3 through 5 and enter here. . . . . . . . . . . . . . . . . . . . . . . . 
7
7
Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
8
Salaries and wages (less employment credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
9
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
10
Bad debts (see Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
11
Rents
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
12
Taxes and licenses (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
13
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
Depreciation from federal Form 4562 not claimed elsewhere on return (see Instructions) . . . . . . . . . . .
15
15
Depletion (Do not deduct oil and gas depletion. See Instructions.) . . . . . . . . . . . . . . . . . . . . . . .
16
16
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
17
Pension, profit-sharing, etc. plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
18
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
19
Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
20
TOTAL deductions — Add lines 7 through 19 and enter here . . . . . . . . . . . . . . . . . . . . . . . . 
21
21
Ordinary income (loss) from trade or business activities — line 6 minus line 20 (To Sch. K, line 1) . . . . . . .
DECLARATION:
I declare, under the penalties set forth in section 231-36, HRS, that this return (including any accompanying schedules or statements) has been examined
by me and, to the best of my knowledge and belief, is true, correct, and complete, made in good faith, for the taxable year stated, pursuant to the Hawaii Income Tax Law, Chapter
235, HRS. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Signature of officer
Date
Type or print name and title of officer
 May the Hawaii Department of Taxation discuss this return with the preparer shown below? . . . . . . . . . . . . .
 Yes
 No
(See page 3 of the Instructions) This designation does not replace Form N-848, Power of Attorney.
Date
Preparer’s identification no.
Preparer’s Signature
Check if
Print Preparer’s Name
self-employed
Paid
Preparer’s
Federal
Firm’s name (or
Information
E.I. No. 
yours if self-employed)
Phone no. 
Address and Postal/ZIP Code
FORM N-35
ID NO 01
N35_I 2018A 01 VID01
Clear Form
STATE OF HAWAII—DEPARTMENT OF TAXATION
THIS SPACE FOR DATE RECEIVED STAMP
FORM
S CORPORATION INCOME TAX RETURN
N-35
2018
(REV. 2018)
For calendar year
or other tax year beginning  __________________ , 2018
and ending  ________________ , 20 ________
AMENDED Return (Attach Sch AMD)
 Federal Employer I.D. No.
Name
Business Activity Code (Use code shown on federal Form 1120S)
Dba or C/O
 Hawaii Tax I.D. No.
Mailing Address (number and street)
City or town, State, and Postal/ZIP Code. If foreign address, see Instructions.
Enter the number of Schedules NS
attached to this return 
Is the corporation electing to be an S corporation beginning with this tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
No
Check if: (1)
Initial Return (2)
Final Return (3)
S Election Termination or Revocation (4)
Name Change (5)
Change of Address (6)
IRS Adjustment
How many months in 2018 was this corporation in operation?_____
Was this corporation in operation at the end of 2018? . .
Yes
No
CAUTION: Include only trade or business income and expenses on lines 1a through 20. See Instructions for more information.
1
a Gross receipts or sales (see Instructions). . . . . . . . . . . . . . . . . . .
1a
b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
c Line 1a minus line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1c
2
2
Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
Gross profit (line 1c minus line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
4
Net gain or (loss) from Schedule D-1, Part II, line 19 (attach Schedule D-1) . . . . . . . . . . . . . . . . . . .
5
5
Other income (see Instructions) (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
6
TOTAL income (loss) — Add lines 3 through 5 and enter here. . . . . . . . . . . . . . . . . . . . . . . . 
7
7
Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
8
Salaries and wages (less employment credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
9
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
10
Bad debts (see Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
11
Rents
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
12
Taxes and licenses (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
13
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
Depreciation from federal Form 4562 not claimed elsewhere on return (see Instructions) . . . . . . . . . . .
15
15
Depletion (Do not deduct oil and gas depletion. See Instructions.) . . . . . . . . . . . . . . . . . . . . . . .
16
16
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
17
Pension, profit-sharing, etc. plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
18
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
19
Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
20
TOTAL deductions — Add lines 7 through 19 and enter here . . . . . . . . . . . . . . . . . . . . . . . . 
21
21
Ordinary income (loss) from trade or business activities — line 6 minus line 20 (To Sch. K, line 1) . . . . . . .
DECLARATION:
I declare, under the penalties set forth in section 231-36, HRS, that this return (including any accompanying schedules or statements) has been examined
by me and, to the best of my knowledge and belief, is true, correct, and complete, made in good faith, for the taxable year stated, pursuant to the Hawaii Income Tax Law, Chapter
235, HRS. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Signature of officer
Date
Type or print name and title of officer
 May the Hawaii Department of Taxation discuss this return with the preparer shown below? . . . . . . . . . . . . .
 Yes
 No
(See page 3 of the Instructions) This designation does not replace Form N-848, Power of Attorney.
Date
Preparer’s identification no.
Preparer’s Signature
Check if
Print Preparer’s Name
self-employed
Paid
Preparer’s
Federal
Firm’s name (or
Information
E.I. No. 
yours if self-employed)
Phone no. 
Address and Postal/ZIP Code
FORM N-35
ID NO 01
N35_I 2018A 01 VID01
FORM N-35 (REV. 2018)
Page 2
Name as shown on return
Federal Employer Identification Number
22
a Excess net passive income tax (attach schedule(s))
22a
b Tax from Schedule D (Form N-35), line 21
22b
c Number of N-4’s attached 
22c
Taxes withheld on attached N-4’s
d LIFO recapture tax
22d
e Interest due under look-back method
22e
f
22f
Add lines 22a, 22b, 22c, 22d, and 22e
23
a 2017 overpayment allowed as a credit
23a
b 2018 estimated tax payments from N-3s_____________ and N-288s_____________ 23b
c Payments with extension
23c
d Add lines 23a, 23b, and 23c
23d
24
 
24
Underpayment of estimated tax penalty (see Instructions) Check if Form N-220 is attached
25
25
OVERPAYMENT (If line 23d is larger than the total of lines 22f and 24), enter AMOUNT OVERPAID
26
Enter amount of line 25 you want Credited to 2019 estimated tax  26a $
Refunded 26b
27
27
TAX DUE (If the total of lines 22f and 24 is larger than line 23d) enter the amount due
28
AMOUNT OF PAYMENT (see Instructions)
28
29
Amount paid (overpaid) on original return — AMENDED RETURN ONLY
29
30
BALANCE DUE (REFUND) with amended return (See Instructions)
30
Cost of Goods Sold (See Instructions for Schedule A)
Schedule A
1
1
Inventory at beginning of year
2
2
Purchases
3
3
Cost of labor
4
4
Additional IRC section 263A costs (see federal Instructions and attach a schedule)
5
5
Other costs (attach schedule)
6
6
Total—Add lines 1 through 5
7
7
Inventory at end of year
8
8
Cost of goods sold—Line 6 minus line 7 (Enter here and on page 1, line 2)
9
a Check all methods used for valuing closing inventory:
(i)
Cost as described in Treasury Regulations section 1 471-3
(ii)
Lower of cost or market as described in Treasury Regulations section 1 471-4 (see Instructions)
(iii)
Other (specify method used and attach explanation) 
b Check if there was a writedown of subnormal goods as described in Treasury Regulations section 1 471-2(c)
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach federal Form 970)
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of
9d
closing inventory computed under LIFO
e Do the rules of section 263A (with respect to property produced or acquired for resale) apply to the corporation?
Yes
No
f
Was there any change in determining quantities, cost or valuations between opening and closing inventory?
Yes
No
If “Yes,” attach explanation
Schedule B
Other Information
1
Check method of accounting: a
b
c
Other (specify) 
Cash
Accrual
2
a Date of incorporation
b Date business began in Hawaii
c Under laws of
d Date of federal election as an S corporation
3
Refer to the listing of Business Activity Codes at the end of the federal Instructions for Form 1120S and state your principal:
Business Activity  ___________________________________ ; Product or service  _____________________________
4
Did the corporation at the end of the tax year own, directly or indirectly, 50% or more of the voting stock of a domestic
corporation? (For rules of attribution, see IRC section 267(c) ) If “Yes” attach a schedule showing: (a) name, address
and employer identification number (b) percentage owned, and (c) if 100% owned, was QSSS election made?
Yes
No
5
Enter the number of shareholders in the corporation at the end of the tax year who are:
residents of Hawaii
nonresidents of Hawaii
6
Did the corporation derive income from sources outside Hawaii which is not includable in the Hawaii return?
Yes
No
7
If the corporation: (1) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis
determined by reference to its basis (or the basis of any other property) in the hands of a C corporation, and (2) has net unrealized built-in gain
(defined by IRC section 1374(d)(1)) in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced
by net recognized built-in gain from prior years
$
FORM N-35
ID NO 01
N35_I 2018A 02 VID01
FORM N-35 (REV. 2018)
Page 3
Name as shown on return
Federal Employer Identification Number
b. Attributable
c. Attributable
Schedule K
Shareholders’ Pro Rata Share Items
to Hawaii
Elsewhere
1
1
Ordinary income (loss) from trade or business activities (page 1, line 21)
2
2
Net income (loss) from rental real estate activities (attach federal Form 8825)
3 a Gross income from other rental activities
3a
b Expenses from other rental activities (attach schedule)
3b
c Net income (loss) from other rental activities Line 3a minus line 3b
3c
4
4
Interest income
5
5
Ordinary dividends
6
6
Royalty income
7
7
Net short-term capital gain (loss) (Schedule D (Form N-35))
8
8
Net long-term capital gain (loss) (Schedule D (Form N-35))
9
9
Net gain (loss) under IRC section 1231 (attach Schedule D-1)
10
10
Other income (loss) (attach schedule)
11
11
Charitable contributions (attach schedule)
12
12
IRC section 179 expense deduction (attach federal Form 4562)
13
13
Deductions related to portfolio income (loss) (attach schedule)
14
14
Other deductions (attach schedule)
15 a Interest expense on investment debts paid or accrued in 2018
15a
b (1) Investment income included on lines 4, 5, and 6, above
15b(1)
(2) Investment expenses included on line 13, above
15b(2)
16 a Fuel Tax Credit for Commercial Fishers (attach Form N-163)
16a
b Total cost of property qualifying for the Capital Goods Excise Tax Credit (See Instructions)
16b
c Amounts needed to claim the Enterprise Zone Tax Credit (attach Form N-756)
See Instructions
16c
d Hawaii Low-Income Housing Tax Credit (attach Form N-586)
16d
e Credit for Employment of Vocational Rehabilitation Referrals (attach Form N-884)
16e
f Motion Picture, Digital Media, and Film Production Income Tax Credit (attach Form N-340)
16f
g Credit for School Repair and Maintenance (attach Form N-330)
16g
h Renewable Energy Technologies Income Tax Credit (attach Form N-342)
16h
i Important Agricultural Land Qualified Agricultural Cost Tax Credit (attach Form N-344)
16i
j Tax Credit for Research Activities (attach Form N-346)
16j
k Capital Infrastructure Tax Credit (attach Form N-348)
16k 
l Cesspool Upgrade, Conversion or Connection Income Tax Credit (attach Form N-350)
16l
m Renewable Fuels Production Tax Credit (attach Form N-352)
16m
n Organic Foods Production Tax Credit (attach Form N-354)
16n
o Hawaii income tax withheld on Forms N-288 (See Instructions)
16o
p Total Hawaii income tax withheld on Forms N-4
16p
q Net income tax paid by the S corporation to states which do not recognize the
16q
corporation’s “S” status Identify state(s)
(Attach a separate schedule if more space is needed for any item.)
17
Total property distributions (including cash) other than dividend distributions
17
reported on line 22, below Date of Distribution __________________________
18
18
Tax exempt interest income
19
19
Other tax exempt income
20
20
Non-deductible expenses
21
Other items and amounts not included on lines 1 through 20, above, that are
21
required to be reported separately to shareholders (attach schedule)
22
22
Total dividend distributions paid from accumulated earnings and profits
23
Income (loss) — Combine lines 1 through 10 From the result, subtract the sum
23
of lines 11 through 15a
24
24
Corporate adjustments to income attributable to Hawaii (attach schedule)
25
25
Interest penalty on early withdrawal of savings
FORM N-35
ID NO 01
N35_I 2018A 03 VID01
FORM N-35 (REV. 2018)
Page 4
Name as shown on return
Federal Employer Identification Number
Schedules L, M-1, and M-2
Attach a copy of page 4 of federal Form 1120S to this return. Attach Sch. M-3, if applicable.
Schedule N
List of Shareholders (Attach a separate sheet if more space is needed)
Year Sch. NS
Amount of
No. of shares
filed, if any
State of
Payment on
owned at all times
Name and Address
SSN or FEIN
(Indicate if
Form N-4
Residence
during the year
revoked)
attached
1
2
3
Schedule O
Apportionment of Income (See Attributable to Hawaii in the Instructions.)
1
Ordinary income (loss) from trade or business activities (From page 1, line 21) . . . . . . . . . . . . . . . . .
2
%
Apportionment factor (from Schedule P, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Business income apportioned to Hawaii (line 1 multiplied by line 2) (To Schedule K, line 1, col. b) . . . . . . .
4
Business income apportioned elsewhere (line 1 minus line 3). (To Schedule K, line 1, col. c) . . . . . . . . . .
5
Are the totals of columns b and c, Schedule K, lines 2 through 6, and the amounts shown on Schedule P, column B, the same as those
reported in returns or reports to other states under the Uniform Division of Income for Tax Purposes Act? . . . . . . . .
Yes
No
If “No,” please explain
Schedule P
Computation of Apportionment Factors (See Attributable to Hawaii in the Instructions.)
In Hawaii
Total Everywhere
Property — (use original cost)
Beginning of taxable year
End of taxable year
Beginning of taxable year
End of taxable year
Land
Buildings
Inventories
Leasehold interests*
Rented Property*
Other Property
Total
* Enter net annual rent X 8.
A. In Hawaii
B. Everywhere
Compute all percentages to 5 decimal places (0.00000%)
1
Property values (average value of property above) . . . . . . . . . . . .
2
%
Property factor (line 1, col. A divided by line 1, col. B) . . . . . . . . . . .
3
Total compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
%
Payroll factor (line 3, col. A divided by line 3, col. B) . . . . . . . . . . . .
5
Total sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
%
Sales factor (line 5, col. A divided by line 5, col. B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
%
Total of factors (add lines 2, 4, and 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
%
Average of factors (see instructions) (To Schedule O, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Designation of Tax Matters Person (See Instructions.)
Enter below the shareholder designated as the tax matters person (TMP) for the tax year of this return, if one has been designated:
Name of
Identifying
designated TMP
number of TMP
Address of
designated TMP
FORM N-35
ID NO 01
N35_I 2018A 04 VID01

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