Hawaii Net Investment Income
What should I include in my Hawaii net investment income?
N-158
Part II — Net Investment Income
Line 4a Gross income from property held for investment includes income, unless derived in the ordinary course of a trade or business, from:
• Interest,
• Ordinary dividends (except Alaska Permanent Fund dividends),
• Annuities, and
• Royalties. Include investment income reported to you on Schedule K-1 from a partnership or an S corporation.
Also include net investment income from an estate or a trust. Also include on line 4a (or 4b, if applicable) net passive income from a passive activity of a publicly traded partnership (as defined in section 469(k)(2)). See Notice 88-75, 1988-2 C.B. 386, for details. Net income from certain passive activities, such as rental of substantially nondepreciable property, may have to be recharacterized and included on line 4a. See federal Publication 925, Passive Activity and At-Risk Rules, or Regulations section 1.469-2(f)(10) for details. If you are filing Form N-814, Parent’s Election to Report Child’s Interest and Dividends, part or all of your child’s income may be included on line 4a. See the instructions for Form N-814 for details.
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