This is a corporation that provides a service. They were incorporated and did business solely in Hawaii until 2015. My question is with regards to Schedule R-1. From reading the instructions it seems that it needs to calculate an apportionment of net income.
There are two methods of calculating the apportionment: One is the single sales factor formula and the other is the three factor formula. Hawaii only uses the three factor formula.
I swore I read somewhere (and of course I can't find it now), that all new CA corporations after a certain date can only use the single sales factor formula. Is that true? Ideally, I'd like to use the 3 factor formula only because it more closely mirrors the HI apportionment formula.
And my last question and I think I know what the answer is but I have to throw it out there: this firm was formed in 2002 and it has significant NOL's carried forward so any gain they made in 2015 was zero'd out. I am assuming that since this is the initial CA return, that I cannot use the NOL on a CA return because the losses are not attributable to any prior CA activity.
There are two methods of calculating the apportionment: One is the single sales factor formula and the other is the three factor formula. Hawaii only uses the three factor formula.
I swore I read somewhere (and of course I can't find it now), that all new CA corporations after a certain date can only use the single sales factor formula. Is that true? Ideally, I'd like to use the 3 factor formula only because it more closely mirrors the HI apportionment formula.
And my last question and I think I know what the answer is but I have to throw it out there: this firm was formed in 2002 and it has significant NOL's carried forward so any gain they made in 2015 was zero'd out. I am assuming that since this is the initial CA return, that I cannot use the NOL on a CA return because the losses are not attributable to any prior CA activity.
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