(a) The pro rata share of each resident and nonresident shareholder in the income attributable to the State of an S corporation, for the purposes of section S corporation and its shareholders” class=”unlinked-ref” datatype=”S” sessionyear=”2019″ statecd=”HI”>235-122(c), shall be subject to the modifications to corporate income provided by this chapter.

Terms Used In Hawaii Revised Statutes 235-123

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Pro rata share: means the share determined with respect to an S corporation shareholder for a taxable period in the manner provided in section 1377(a)(1) or (2) or 1362(e)(2) or (3) or (6)(D), as the case may be, of the Internal Revenue Code. See Hawaii Revised Statutes 235-121
  • S corporation: means a corporation for which a valid election under section 1362(a) of the Internal Revenue Code is in effect. See Hawaii Revised Statutes 235-121
(b) The pro rata share of each resident shareholder in the income not attributable to the State of an S corporation, for the purposes of section 235-122(c), shall be subject to the modifications to individual income provided by this chapter.
(c) S corporation items taken into account by a shareholder pursuant to section 235-122(c) shall be characterized as though received or incurred by the corporation and not its shareholder.

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