Investors & landlords

Hopefully someone that has more experience with Hawaii tax will be able to chime in.

I have a few thoughts on this:

• I believe the business needs to qualify first before any benefit would be available at the individual level.
  • Have you met this initial hurdle?
• I'm not sure that an RSU would qualify.  
  • An RSU isn't an option.  The stock is just granted based on a specific vesting period.
  • When you receive an "option", you receive an option to either buy or not buy the stock at a specific price and date.  Whether you buy the stock or not is up to the taxpayer.
• Take a look at the following snippet from a ruling to a business on this matter:
  • Section 235-9.5, HRS, provides an exclusion for “all income earned and proceeds derived from stock options or stock,” including stock issued through the exercise of stock options or warrants, from a QHTB or from a holding company of a QHTB11 by an employee, officer, or director of the QHTB, or investor who qualifies for the high technology business investment tax credit in § 235-110.9, HRS, effective for taxable years beginning after December 31, 2000. This exclusion is applicable to dividends from stock or stock received through the exercise of stock options or warrants, the receipt or the exercise of stock options or warrants, and income from the sale of stock, including stock issued through the exercise of stock options or warrants.
  • I'm not sure the sole reference to "stock" in the first sentence means any stock.  I believe everything is tied to whether the income, etc. is related to an option; exercised and generates income (dividend), sold and generates income, etc.
  • I believe the "stock" reference is tied to stock as a result of exercising an option.
• Once again, that's my first blush.