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INSTRUCTIONS - SCHS. O & P (FORM N-30)

(REV. 2005)

property in Hawaii to the original cost of partner-

cluded in the property factor of the formula, and

less returns and allowances. In the case of tangi-

ship tangible personal property everywhere, de-

income therefrom should not be included in the

ble personal property there shall be attributable

termined at the time of the sale. If more than fifty

sales factor. Likewise, salaries, wages, or other

to Hawaii all sales of such property:

percent of the value of a partnership’s assets

compensation of officers and employees, whose

(A) delivered to a purchaser at a point within

consists of intangibles, gain or loss from the sale

services were not performed in producing the in-

Hawaii regardless of the f.o.b. point or where

of the partnership interest shall be allocated to

come reported on Schedule O, line 23, should

the sale was consummated,

Hawaii in accordance with the sales factor of the

not be included.

(B) shipped to a purchaser situated at a point

partnership for its first full tax period immediately

If this is a return for a combined group of cor-

within Hawaii regardless of the f.o.b. point or

preceding its tax period during which the partner-

porations, compute the factors on this schedule

where the sale was consummated, and

ship interest was sold.

for the combined group and attach a worksheet

Line 28. Enter here the gain (or loss) from the

showing the requested information for each

Hawaii or shipped to a purchaser at a point

sale of real estate and other tangible assets not

member in the group. If this is a separate return

outside Hawaii, if such point is located in a

connected with the unitary business.

for a member of a combined group, enter the

jurisdiction in which the taxpayer is not doing

group’s factor information in column (a) and the

Line 29. Enter here royalties from property

business and the sale was made on an order

member’s Hawaii factor information in column

not used in the unitary business.

secured or received by an office or branch in

(b). Attach a worksheet showing the requested

Line 30. Enter here the net profit (or loss)

Hawaii or a representative residing or

information for each member in the group. Also

from business other than the unitary business

stationed in Hawaii.

attach a list of the names, addresses and the

(including rental property) operated on a sepa-

Federal Employer Identification Numbers for all

In the case of sales of other than tangible per-

rate accounting basis.

entities included in the combined group.

sonal property, there shall be included, in addi-

Line 31(b). Enter the amount of net capital

tion to amounts includible under rules prescribed

PROPERTY RATIO.

gain wholly attributable to Hawaii. Also, enter the

on the sale of tangible personal property above,

Real property situated, and tangible personal

total of lines 31(b) and 26, on Form N-30, page 2,

all sales or receipts from:

property permanently located, in Hawaii on the

Schedule J, line 13.

(A) property located, services furnished, and

last day of the taxable year if actually used in the

Line 32. Enter here income from intangible

contracts performed in Hawaii, irrespective

unitary business, should be listed as within Ha-

personal property. Add back Hawaii allocated,

of the place where the contract is made,

waii. In determining the situs of movables, such

non-business or nonunitary income and divi-

(B) communications transmitted from a point in

as equipment used in Hawaii part of the year and

dends.

Hawaii,

in another jurisdiction part of the year, the value

Line 35. The Hawaii contribution deduction is

of such property shall be assigned to a location

computed by multiplying the total contributions

within and without Hawaii on the basis of approx-

conducted in Hawaii.

by the Hawaii allocation percentage determined

imate average time of such usage. In the case of

USE OF FACTORS.

on Schedule P. The amount of the deduction is

properties leased or rented, the value of the

limited to 10% of the Hawaii taxable income on

leasehold interest or rented property shall be in-

All business income shall be apportioned to

line 38 of Schedule O as adjusted per IRC sec-

cluded in the property ratio. The values of lease-

this State by multiplying the income by a fraction,

tion 170(b)(2), i.e., net operating losses, capital

hold interests and other leased or rented proper-

the numerator of which is the property factor plus

losses, contributions, dividend deduction, etc.

ties are obtained by multiplying the net annual

the payroll factor plus the sales factor, and the

rent paid by 8.

denominator of which is three. (sections 235-29

Line 36. Enter here any net operating loss as

and 255-1, HRS)

determined in accordance with section 235-7(d),

PAYROLL RATIO.

HRS, and/or any net operating loss purchased

MODIFICATION OF FACTORS FOR

Salaries, wages, commissions, and other

from a qualified high technology business.

CERTAIN LINES OF BUSINESS.

compensation for personal services paid during

the taxable year to officers and employees in

A taxpayer carrying on the business of air or

DIRECTIONS FOR COMPLETING SCHEDULE

connection with the unitary business should be

sea transportation service, construction con-

P APPORTIONMENT FORMULA.

entered as within Hawaii if the services are actu-

tracting, publishing, and radio or television

In filing this schedule, include only items re-

ally performed here, regardless of where pay-

broadcasting may derive income partly from

lated to, or connected with, the income reported

ment is made or control exercised.

sources within and partly from sources without

on Schedule O, line 23. Thus, since this line

Hawaii. Such a taxpayer is required to use the

SALES RATIO.

does not include income or losses from intangi-

factors as modified under Department of Taxa-

Gross sales or receipts attributable to and de-

ble personal property, and rental of, sale or other

tion Administrative Rules, section 18-235-38-06.

rived from the taxpayer’s unitary business opera-

disposition of property not connected with the

tions shall be the gross sales or gross receipts

unitary business, such property should not be in-

Instructions For Schedules O And P (Form N-30) - Allocation And Apportionment Of Income Page 2

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