Enter all of your income items in the Federal return. Report the 1099-S for the timeshare in the Federal return in the Investments section and identify it as a second home so that the loss is nontaxable.
In the Hawaii return interview, go through all of the screens where it lists your income items and asks how much should be attributed to Hawaii. When you get to the screen that lists capital gains and losses, make a zero entry for the Hawaii property if it is showing a gain in the Federal column. You wouldn't show a loss since the loss is not deductible.
By reporting the 1099-S on the Federal return, you have taken care of the reporting requirement.
See this TurboTax tips article for more information on selling at a loss.
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