Sch. D1: Sales of Business Property (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Hawaii Schedule D-1 reports gains and losses from sales or exchanges of business property and involuntary conversions. It also calculates recapture amounts under IRC sections 179 and 280F(b)(2) when business use drops to 50% or less.
Who files this form
Hawaii Schedule D-1 is used to report sales of business property, involuntary conversions, and recapture amounts under IRC sections 179 and 280F(b)(2).
The form includes sections for:
- Sales or exchanges of business property and involuntary conversions other than casualty or theft, generally for property held more than one year.
- Ordinary gains and losses, including property held one year or less.
- Gains from dispositions of property under IRC sections 1245, 1250, 1252, 1254, and 1255.
- Recapture when business use drops to 50% or less.
What you'll need
Have the following information available, as applicable:
- Your name as shown on your tax return and your Social Security number or federal employer identification number.
- Property descriptions, acquisition dates, and sale dates.
- Gross sales prices, cost or other basis, improvements, and selling expenses.
- Depreciation or depletion allowed or allowable.
- Federal Forms 1099-B or 1099-S, or substitute statements, reporting 2025 proceeds included on this schedule.
- Federal Forms 4684, 6252, and 8824 if you are reporting amounts from those forms.
- Prior-year nonrecaptured net IRC section 1231 losses.
- Prior-year section 179 deductions or depreciation amounts and recomputed depreciation if completing Part IV.
How to file
File Schedule D-1 with your Hawaii tax return. The form lists Forms N-15, N-20, N-30, N-35, and N-40, among others, and directs filers to separate instructions, including those for N-11 or N-15.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Confusing the Hawaii form with a federal form. The form specifically cautions not to confuse Hawaii Schedule D-1 with federal Schedule D-1.
- Overlooking line 1a before completing line 21. The note on line 21 says to see line 1a first. Line 1a covers 2025 gross proceeds reported on federal Forms 1099-B or 1099-S, or substitute statements, that you include on lines 2, 11, or 21.
Questions people ask
Where do I report ordinary gains and losses on property held one year or less?
Part II, line 11 includes property held one year or less and ordinary gains and losses not included on lines 12 through 17.
Where do partnerships and S corporations report the amount on line 8?
Partnerships enter it on Form N-20, Schedule K, line 10. S corporations enter it on Form N-35, Schedule K, line 9. Both skip lines 9, 10, 12, and 13 of Schedule D-1.
What is Part IV for?
Part IV covers recapture under IRC sections 179 and 280F(b)(2) when business use drops to 50% or less. Line 36 calculates the recapture amount by subtracting recomputed depreciation on line 35 from the amount on line 34.
What if I used straight-line depreciation for IRC section 1250 property?
The form directs you to enter zero on line 27i.