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INSTRUCTIONS

FORM N-332

(2001)

PAGE 2

per unit in the aggregate. This means

Tax Liability Limitations

Part II

that if two people own a house and they

NOTE: If you are also claiming the

Part II is for associations of apart-

jointly incur $300,000 in remodeling

Low-Income Housing Tax Credit (Form

ment owners and associations of inter-

costs during 2001, only a total of

N-586), complete Form N-586 before

val apartment owners (AIAO) to pro-

$250,000 of the costs may be claimed

completing this form. If you have any

vide information to the associations’

for the credit by the two people. If these

carryover of unused credit from Form

owner-members regarding the mem-

same two people incur $25,000 in addi-

N-586, do not complete lines 8 and 9 of

bers’ share of the associations’ qualify-

tional remodeling costs for the same

this form. Enter zero on line 10 and

ing construction or renovation costs.

house in January, 2002, none of this

continue to line 12. Your total residen-

Each member must qualify for the

amount may be claimed for the credit

tial construction and remodeling tax

credit on its own. The fact that this in-

as total costs per unit are limited to

credit cannot be used this year and

formation is provided to a member

$250,000.

must be carried over to next year.

does not qualify that member to take

Line 2 — Flow through of qualifying

the credit.

If you are also claiming the High

residential construction or renovation

Technology Business Investment Tax

Any association of apartment own-

costs received from other entities, if

Credit (Form N-318), complete Form

ers or AIAO which has incurred qualify-

any. In the case of a taxpayer who is a

N-318 before completing this form. If

ing construction or renovation costs for

member of a pass-through entity (i.e.,

you have any carryover of unused

residential real property located in Ha-

partnership, S corporation, estate, or

credit from Form N-318, do not com-

waii shall provide to its members a

trust) and who claims a tax credit for the

plete lines 8 and 9 of this form. Enter

statement of the member’s share of

entity’s qualified construction or reno-

zero on line 10 and continue to line 12.

those qualifying costs on this form.

vation costs, enter the amount of the

Your total residential construction and

costs received from the entity on line 2.

Costs are limited to $250,000, in the

remodeling tax credit cannot be used

aggregate, for each unit.

Line 3 — Estates and trusts: The to-

this year and must be carried over to

tal cost on line 3 is to be allocated be-

next year.

Name of association — The asso-

tween the estate or trust and the benefi-

ciation’s name is to appear in the name

If you are also claiming the Technol-

ciaries in the proportion of the income

space near the top of the form.

ogy Infrastructure Renovation Tax

allocable to each party. On the dotted

Credit (Form N-326), complete Form

Line 1. — Member’s name. Enter

line to the left of line 3, enter the cost al-

N-326 before completing this form. If

the member’s name on this line.

locable to the estate or trust with the

you have any carryover of unused

designation “N-40 PORTION”. Attach

Line 2. — Member’s identification

credit from Form N-326, do not com-

Form N-332 to the N-40 return and

number. Enter the member’s social se-

plete lines 8 and 9 of this form. Enter

show the distributive share of the costs

curity number or federal employer iden-

zero on line 10 and continue to line 12.

for each beneficiary.

tification number.

Your total residential construction and

Form N-20 and N-35 filers, stop

remodeling tax credit cannot be used

Line 3. — Member’s share of quali-

here.

Form N-20 filers, enter the

this year and must be carried over to

fying costs. Enter the member’s share

amount on line 3 on Schedule K, line

next year.

of the total qualifying construction or

28. Form N-35 filers, enter the amount

renovation costs incurred by the asso-

Line 8 — Enter the tax liability before

on line 3 on Schedule K, line 17. Form

ciation.

any credits from the appropriate line of

N-40 filers enter the distributive share

your tax return.

Instructions for Members

amount on line 10 of Schedule K-1,

Form N-40, for each beneficiary, other-

Line 9 — The law requires that ALL

If you have received this form from

wise continue to line 4. All others, con-

other credits offset a taxpayer's tax lia-

your association, you may, or may not,

tinue to line 4.

bility BEFORE allowing a residential

qualify for the credit. See the General

construction and remodeling tax credit.

Line 6 — For 2002, this space is re-

Instructions of this form to determine if

Complete the Credit Offset Worksheet

served for the carryover of unused resi-

you qualify to take this credit. If you

on the back of Form N-332 and enter the

dential construction and remodeling tax

qualify to take the credit, enter the

result on line 9.

credit from 2001.

amount in Part II, line 3 of the Form

N-332 you received from your associa-

Line 11 — Compare the amounts on

Line 7 — Add lines 5 and 6. This is

tion of apartment owners or AIAO on

lines 7 and 10. Enter the smaller of line

your tentative current year residential

line 2 of Part I and check box d of the

7 or 10 here. This is your maximum

construction and remodeling tax credit.

Form N-332 you will use to compute

credit allowed for this taxable year.

your credit and file with your return.

Instructions For Form N-332 - Residential Construction And Remodeling Tax Credit - State Of Hawaii Department Of Taxation - 2001 Page 2

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