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

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

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

(2)  The taxpayer's commercial domicile is in thisState and the taxpayer is not taxable in the state in which the property had asitus.

(c)  Except in the case of the sale of apartnership interest, capital gains and losses from sales of intangiblepersonal property are allocable to this State if the taxpayer's commercialdomicile is in this State.

(d)  Gain or loss from the sale of apartnership interest is allocable to this State in the ratio of the originalcost of partnership tangible property in the State to the original cost ofpartnership 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 ofintangibles, gain or loss from the sale of the partnership interest shall beallocated to this State in accordance with the sales factor of the partnershipfor its first full tax period immediately preceding its tax period during whichthe partnership interest was sold. [L 1967, c 33, pt of §1; HRS §235-26; am L1989, c 19, §1]