HAR § 18-235-5-01 — Allocation of income of persons not taxable upon their entire income

(a) The definitions contained in section 18-235-4-01 apply to sections 18-235-5-01 to 18-235-5-04. (b) The rules contained in sections 18-235-5-01 to 18-235-5-04 apply to taxpayers having only nonbusiness income, individual taxpayers having income from the rendering of purely personal services, and public utilities taxable under chapter 239, HRS, whether determining Hawaii source income or out-of-state income. (c) In computing the unrelated business taxable income of a tax exempt organization under sections 512 to 514 (with respect to unrelated business taxable income, unrelated trade or business, and unrelated debt-financed income), IRC, that is subject to tax in Hawaii, sections 235-21 to 235-39, HRS, shall apply. (d) Taxpayers described in subsection (b) shall use these rules for determining estimated tax, determining the amount of credit permitted under section 235-55, HRS, and other purposes that require allocation or apportionment of income between jurisdictions. Other taxpayers shall use sections 235-21 to 235-39, HRS, for those purposes. (e) Section 235-5(c), HRS, and section 18-235-5-03 apply to all taxpayers.