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SCHEDULES O & P
(FORM N-20)
(Rev. 2020) STATE OF HAWAII — DEPARTMENT OF TAXATION
SCHEDULES O AND P (FORM N-20)
ALLOCATION AND APPORTIONMENT OF INCOME
ATTACH THESE SCHEDULES TO FORM N-20
If the partnership had ordinary income or (loss) from trade or business activities both within and without Hawaii, complete these schedules to determine the
business income or (loss) apportioned to Hawaii. Each partnership must state specifically the income attributable to the State and the income attributable
everywhere with respect to each partner. Note: Compute all percentages to 5 decimal places (.00000%).
Schedule O — Apportionment of Income
1 Ordinary income (loss) from trade or business activities for Hawaii tax purposes (From Form N-20, page 1, line 16) .
2 Apportionment factor (From Schedule P, line 8 below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
3 Business income apportioned to Hawaii (line 1 multiplied by line 2) (To Form N-20, Schedule K, line 1, col. b) . . . . .
Schedule P — Computation of Apportionment Factors
In Hawaii Total Everywhere
Property –– (use original cost) Beginning of taxable year End of taxable year Beginning of taxable year End of taxable year
Land
Buildings
Inventories
Leasehold interests*
Rented Property*
Other Property
* Enter net annual rent X 8.
A. In Hawaii B. Everywhere
1 Property values (average value of property above) . . . . . . . . . . . . .
2 Property factor (line 1, col. A divided by line 1, col. B) . . . . . . . . . . . . %
3 Total compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Payroll factor (line 3, col. A divided by line 3, col. B) . . . . . . . . . . . . . %
5 Total sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Sales factor (line 5, col. A divided by line 5, col. B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
7 Total of factors (add lines 2, 4, and 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
8 Average of factors (see instructions) (To Schedule O, line 2 above) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
9 Are the amounts shown on Form N-20, page 1, lines 4 through 7, and on Schedule P, column “B. Everywhere,” lines 1, 3, and 5 above, the same as
those reported in returns or reports to other states under the Uniform Division of Income for Tax Purposes Act? YES NO If "NO," please
explain.
Ordinary income or (loss) from trade or business rented and used in this State during the tax period will properly reflect the value of rented property
activities shall be attributed to the State by the use and the denominator of which is the average value may be required by the department or requested by
of the apportionment of business income allocation of all the partnership’s real and tangible personal the taxpayer. In no case, however, shall the value
provisions of the Uniform Division of Income for Tax property owned or rented and used during the be less than an amount which bears the same ratio
Purposes Act (UDITPA), section 235-29, HRS. tax period. Property owned by the partnership to the annual rental rate paid by the taxpayer for
Business income shall be apportioned to this is valued at its original cost. The average value the property as the fair market value of that portion
State by multiplying the income by a fraction, the of property shall be determined by averaging the of the property used by the taxpayer bears to the
numerator of which is the property factor plus values at the beginning and ending of the tax total fair market value of the rented property. If
the payroll factor plus the sales factor, and the period. The use of monthly values may be required property owned by others is used by the taxpayer
denominator of which is three. If the denominator if necessary to properly reflect the average value of at no charge or rented by the taxpayer for a nominal
of the property factor, payroll factor, or sales factor the partnership’s property. Property rented by the rate, the net annual rental rate for the property shall
is zero, the denominator of the fraction in section partnership is valued (or capitalized) at eight times be determined on the basis of a reasonable market
235-29, HRS, is reduced by the number of factors the net annual rental rate. Where property is rented rental rate for the property, section 18-235-38-02,
with a zero denominator, and the numerator of that for less than a 12 month period, the rent paid for the HAR.
fraction shall not include any factor with a zero actual period of rental shall constitute the annual PAYROLL FACTOR
denominator. rental rate for the tax period.
The payroll factor is a fraction, the numerator of
PROPERTY FACTOR If the subrents taken into account in determining which is the total amount paid in this State during the
the net annual rental rate under section 18-235-31- tax period by the partnership for compensation, and
The property factor is a fraction, the numerator 02, HAR, produce a negative or clearly inaccurate the denominator of which is the total compensation
of which is the average value of the partnership’s value for any item of property, another method which paid everywhere during the tax period.
real and tangible personal property owned or
(continued on next page)
N20SCHOP_I 2020A 01 VID01 ID NO 01 SCHEDULES O & P
(FORM N-20)
