I have an annual loss on a Hawaii rental property after deducting management fees, repairs, HOA fees and depreciation. When I fill out the Turbo Tax Hawaii State annual tax form, it only asks me for the "Gross Receipts." Nowhere does it ask me for my expenses. Don't expenses matter? If I am entering the Gross amount, it seems that I should be entering the Expenses somewhere. But where should I be entering them?
Or, does Hawaii have an automatic tax on just Gross Receipts even if you are losing money? My brain has a hard time accepting the idea of paying a tax on a loss. Is this their way of collecting the "Excise Tax?" Because it is not computed as an "Income Tax." Is the "Excise Tax" a substitution for the "Income Tax" or a supplemental additional tax?
Also, must I pay the annual Hawaii excise tax in addition to the Hawaii State Income tax? Or is it an either/or situation. or Both?
