HRS § 235-123 — Modification and characterization of income


[§235-123] Modification and
characterization of income. (a) The pro rata share of each resident and
nonresident shareholder in the income attributable to the State of an S
corporation, for the purposes of section 235-122(c), shall be subject to the
modifications to corporate income provided by this chapter.
(b) The pro rata share of each resident
shareholder in the income not attributable to the State of an S corporation,
for the purposes of section 235-122(c), shall be subject to the modifications
to individual income provided by this chapter.
(c) S corporation items taken into account by
a shareholder pursuant to section 235-122(c) shall be characterized as though
received or incurred by the corporation and not its shareholder.