Clear Form

 SCHEDULE K-1                                STATE OF HAWAII — DEPARTMENT OF TAXATION
  (FORM N-40)          Beneficiary’s Share of Income, Deductions, Credits, etc. 
    (REV. 2023)
                                                        Calendar Year 2023                                                                                 N40SCHK1_I 2023A 01 VID01
                    or fiscal year beginning  __________________, 2023 and ending __________________, 20_____
                                     COMPLETE A SEPARATE SCHEDULE K-1 FOR EACH BENEFICIARY
Name of trust or decedent’s estate †                                                                                                                        Amended K-1 
                                                                                                                                                            Final K-1
Beneficiary’s identifying number   †                                                                        Estate’s or trust’s EIN †
Beneficiary’s name, mailing address and Postal/ZIP Code                                                     Fiduciary’s name, mailing address, and Postal/ZIP Code

                    (a) Allocable share item                                                                (b) Amount               (c) Calendar year 2023 Form N-11*/N-15** 
                                                                                                                                     filers enter the amounts in column (b) on:
 1  Interest .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .            Interest Worksheet (N-15)
 2  Ordinary Dividends .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                    Form N-15, line 9
 3  a  Net short-term capital gain  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                         Capital Gain/Loss Worksheet, line 2 (N-15)
    b  Net long-term capital gain   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                         Capital Gain/Loss Worksheet, line 9 (N-15)
 4  a  Annuities, royalties, and other nonpassive income before  
      directly apportioned deductions.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                              Form N-15, line 17
    b  Depreciation   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
                                                                                                                                     Include on applicable line of  
  c    Depletion  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
                                                                                                                                     appropriate tax form 
  d    Amortization   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
 5  a  Trade or business, rental real estate, and other rental income 
      before directly apportioned deductions.  (see Instructions) .  .  .  .                                           Form N-15, line 17
    b  Depreciation   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
                                                                                                                                     Include on applicable line of  
  c    Depletion  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                   
                                                                                                                                     appropriate tax form
  d    Amortization   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
 6  Net income taxes paid to another state or foreign country                                                          See Instructions for Form N-11, lines 21b and 35 or 
    (list on a separate sheet) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                   Form N-15, lines 38b and 52
 7  a  Total cost of qualifying property for the Capital Goods Excise 
      Tax Credit    .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                 Form N-312
    b  Low-Income Housing Tax Credit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                Form N-586
    c  Tax Credit for Research Activities.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                             Form N-346
 8  Deductions in the final year of trust or decedent’s estate:
    a  Excess deductions on termination                                                                                Worksheet A-6, line 25 (N-11); Worksheet NR-6, line 
      (see Instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                   26 (N-15); or Worksheet PY-6, line 49 (N-15)
    b  Short-term capital loss carryover .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                             Capital Gain/Loss Worksheet, line 5 (N-15)
    c  Long-term capital loss carryover  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                             Capital Gain/Loss Worksheet, line 12 (N-15)
    d  Net operating loss (NOL) carryover.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                Form N-15, line 19
    e  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                          Include on applicable line of  
    f  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .            }             appropriate tax form
 9  Other (itemize):
    a  Payments of estimated tax credited to you .  .  .  .  .  .  .  .  .  .  .  .                                    Form N-11, line 38; Form N-15, line 55
    b  Tax-exempt interest                                                                                             See Instructions for Form N-11, lines 10 and 18  or 
       .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                          Form N-15, line 8
    c  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .            Include on applicable line of appropriate tax form
DISTRIBUTION OF INCOME NOT SUBJECT TO TAX IN HAWAII TO NONRESIDENT BENEFICIARIES — See Instructions
 10  Interest .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
 11  Dividends .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                           Include on applicable line on
 12  Other intangible income (state nature of income)  .  .  .  .  .  .  .  .  .  .                                                  Form N-15, Column A
 13  Capital gain (loss) on intangibles .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
 *  For Form N-11 filers, if your federal Schedule K-1 (Form 1041) and Hawaii Schedule K-1 (Form N-40) amounts are different, the necessary 
    adjustments are to be made on the Hawaii Additions Worksheet and/or the Hawaii Subtractions Worksheet in the Form N-11 Instructions.
 **  All referenced worksheets are located in the Form N-15 Instructions.
                                                                                                                                         SCHEDULE K-1 (FORM N-40)

                                                        ID NO 01

SCHEDULE K-1 
(FORM N-40) 
(REV. 2023)                                                                                                                                               PAGE 2

                      Instructions for Beneficiary Filing Form N-11 or Form N-15
Important Notes                                                                      beneficiary of an estate or trust, do not materially participate is a passive 
                                                                                     activity.
For  Form  N-11  filers,  if  your  federal  Schedule  K-1  (Form  1041)  and 
Hawaii  Schedule  K-1  (Form  N-40)  amounts  are  different,  the  necessary        Caution:  The limitations on passive activity losses under IRC section 469 
adjustments are to be made on the Hawaii Additions Worksheet and/or the              apply to estates and trusts. Federal rules for treating a beneficiary’s income 
Hawaii Subtractions Worksheet in the Form N-11 Instructions.                         and directly allocable deductions from an estate or trust, and other rules 
                                                                                     for  applying  the  passive  loss  limitations  to  beneficiaries  have  not  been 
All worksheets referenced below are located in the Form N-15 Instructions.           finalized.  These rules will be provided in future federal regulations.
                                                                                     Line 7a. Total cost of qualifying property for the Capital Goods  Excise 
General Instructions                                                                 Tax Credit. — Calculate your credit on Form N-312.
Name, Mailing Address, and Identifying Number. — Your name, mailing                  Line 7b. Low-Income Housing Tax Credit. — Calculate your credit on 
address, and identifying number, the estate or trust name, mailing address,          Form N-586.
and identifying number should have been entered on the Schedule K-1 you 
received.                                                                            Line 7c. Tax Credit for Research Activities. — Calculate your credit on 
                                                                                     Form N-346.
Errors.  —  If  you  believe  the  estate  or  trust  has  made  an  error  on  your 
Schedule  K-1,  notify  the  fiduciary  of  the  estate  or  trust  and  ask  for  a Lines 8a through 8d. Deductions in the final year of trust or decedent’s 
corrected Schedule K-1. Do not change any items on your copy. Be sure                estate. — If the fiduciary checked the “Final K-1” box at the top, you may 
that the  estate or trust sends a copy of the corrected Schedule K-1 to the          be allowed to deduct excess deductions from the final year of the trust or 
Hawaii Department of Taxation.                                                       decedent’s estate and certain unused carryovers (subject to limitations) on 
                                                                                     your individual income tax return.
Specific Instructions
                                                                                     Line  9a.  —  For  purposes  of  computing  any  underpayment  and  penalty 
If you are a nonresident beneficiary, see instructions for lines 10 through          on  Form  N-210,  Underpayment  of  Estimated  Tax  by  Individuals  and 
13 below.                                                                            Fiduciaries, you should treat the amount entered on line 9a as an estimated 
                                                                                     tax payment made on January 20, 2024. Attach a copy of this Schedule K-1 
Line 1. Interest. — Report the amount from line 1 (Schedule K-1) on your             to the Hawaii income tax return you file to substantiate your credit.
Interest Worksheet.
                                                                                     Line 9c. — If you are claiming other credits that are not listed in lines 7a 
Line 2. Dividends. — Report the amount from line 2 (Schedule K-1) on                 through 7c, report them on line 9c.
Form N-15, line 9.
                                                                                     Lines 10 through 13
Lines  3a  and  3b.  Capital  Gains.  —  Report  the  amount  from  line  3a 
(Schedule  K-1) on your Capital Gain/Loss Worksheet, line 2. Report the              Nonresident Beneficiary. — Lines 10 through 13 reflect the total interest, 
amount from line 3b (Schedule K-1) on your Capital Gain/Loss Worksheet,              dividends, other intangible income, and capital gains or (losses) from the 
line  9.  If  there  is  an  attachment  to  this  Schedule  K-1  that  reports  a   sale of intangibles not subject to tax in Hawaii.
disposition of a  rental, rental real estate, or passive business activity, see 
the instructions for federal Form 8582 for information on the treatment of           Section 235-4.5(a), Hawaii Revised Statutes (HRS), excludes from gross 
disposition of interests in a passive activity.                                      income any intangible income, such as dividends and interest, earned by a 
                                                                                     trust sited in the State to the extent that, during the taxable year of the trust, 
Lines 5a through 5d. — Internal Revenue Code (IRC) section 469 provides              the beneficial interest in the trust is held by a nonresident beneficiary or 
rules that limit deductions and credits derived from passive activities to the       nonresident beneficiaries. This exclusion does not apply to income received 
income  derived  from  passive  activities  and  the  tax  imposed  on  any  net     from real property held in a land trust formed under Chapter 558, HRS.
income from such activities. A trade or business activity in which you, as