§235-26  Allocation of capital gains and
losses.  (a)  Capital gains and losses from sales of real property located
in this State are allocable to this State.



(b)  Capital gains and losses from sales of
tangible personal property are allocable to this State if:



(1)  The property had a situs in this State at the
time of the sale; or



(2)  The taxpayer's commercial domicile is in this
State and the taxpayer is not taxable in the state in which the property had a
situs.



(c)  Except in the case of the sale of a
partnership interest, capital gains and losses from sales of intangible
personal property are allocable to this State if the taxpayer's commercial
domicile is in this State.



(d)  Gain or loss from the sale of a
partnership interest is allocable to this State in the ratio of the original
cost of partnership tangible property in the State to the original cost of
partnership tangible property everywhere, determined at the time of the sale. 
If more than fifty per cent of the value of a partnership's assets consists of
intangibles, gain or loss from the sale of the partnership interest shall be
allocated to this State in accordance with the sales factor of the partnership
for its first full tax period immediately preceding its tax period during which
the partnership interest was sold. [L 1967, c 33, pt of §1; HRS §235-26; am L
1989, c 19, §1]