Does Hawaii tax out of state rental income?

[taxea]

For years I understood that Hawaii taxes global income. I read the lastest instructions and HRS regarding income tax on Hawaii residents and it says that only Hawaii income is taxed. I have rental clients who are Hawaii residents but own rental property in other states. I know to do a return for the other state but I am now confused on whether that income-which is in an out of state account- gets taxed by Hawaii.

Hawaii taxes local businesses whose income from out of state sources but the rental income from out of state rentals stays in that state and taxes are paid to that state.

Can anyone enlighten me?

[BHoffman]

The instructions for form N11 and Schedule CR seem to indicate that the rental income is taxable on form N11, and there is a non refundable tax credit available on Schedule CR for HI residents who have also paid taxes to another state.

[taxea]

Here is what is confusing to me:
Both the N11 instructions and the Hawaii Revised Statute say in regard to income

"Income
An individual who was a Hawaii resident for
the entire year is subject to income tax on his
or her entire income, computed without regard
to source in the State."

That does not sound like worldwide income is taxed. I'm waiting for the State to
provide me with the HRS section that says different.

[FEDUKE404]

All income taxable to HI resident ?

Here is what is confusing to me:
Both the N11 instructions and the Hawaii Revised Statute say in regard to income

"Income
An individual who was a Hawaii resident for
the entire year is subject to income tax on his
or her entire income, computed without regard
to source in the State."

That does not sound like worldwide income is taxed. I'm waiting for the State to
provide me with the HRS section that says different.

Sounds pretty clear to me that a HI resident is responsible for reporting all income on the HI income tax return, as is the norm for most states.

Issues related to filing non-resident returns for other locations and/or potential HI tax credits for taxes paid is a separate matter.

FE

[taxea]

Welll it sounded obvious to me to so I asked them to provide me the cite that says otherwise. So far I haven't heard back.