Hawaii non-resident state tax on rental income: how are rental expenses handled?

[lindaruthe]

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 Gross Receipts even if you are losing money?

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?

Turbo tax has no side bullet-points to offer any guidance for non-resident filers.

[Critter]

 Hawaii law is that every individual doing business in Hawaii during the taxable year must file a return, whether or not the individual derives any taxable income from that business. Renting property in Hawaii is specifically considered "doing business."  You will enter your "net rental income or loss" on line 17 of Hawaii Form N-15, its non-resident tax form.  In TurboTax, this information will carry  over to the Hawaii return from your federal Schedule E.  Hawaii Form N-15 does not require your GET ID.

http://files.hawaii.gov/tax/forms/2016/n15ins.pdf">http://files.hawaii.gov/tax/forms/2016/n15ins.pdf...

Now the excise tax is on gross rent collected not the net ... that is why the program asks for the gross.  Review the forms to see how this works.  

Reply

[#3]

 Hawaii law is that every individual doing business in Hawaii during the taxable year must file a return, whether or not the individual derives any taxable income from that business. Renting property in Hawaii is specifically considered "doing business."  You will enter your "net rental income or loss" on line 17 of Hawaii Form N-15, its non-resident tax form.  In TurboTax, this information will carry  over to the Hawaii return from your federal Schedule E.  Hawaii Form N-15 does not require your GET ID.

http://files.hawaii.gov/tax/forms/2016/n15ins.pdf">http://files.hawaii.gov/tax/forms/2016/n15ins.pdf...

Now the excise tax is on gross rent collected not the net ... that is why the program asks for the gross.  Review the forms to see how this works.