N&K CPAs Inc.

One of the largest locally owned certified public accounting firms in the State of Hawaii servicing local, national, and international clientele across the pacific.

Welcome to N&K CPAs,  Inc, one of the largest locally owned certified public  accounting firms in  the State of Hawaii. The firm was founded in 1973 with  the partnership  of Sadao Nishihama and Glenn T. Kishida. Today, the  firm has over 60  personnel, including six principals.

There are five major divisions in the firm: Assurance Services, Tax Services, Management Consulting, Information Technology, and Administrative Services. Together, personnel in these divisions provide clients with a full range of services from the traditional audit, tax, and bookkeeping services to business and technology consulting. There is also an international department which services our foreign clients.

UBIT: How it applies to debt-financed property

If a tax-exempt organization engages in a business that is unrelated to its primary purpose, the general rule is that income will be considered unrelated business taxable income and any net income will be subject to the unrelated business income tax (UBIT).

The tax law contains a number of exclusions, including for dividends, interest and rents from real property. However, when debt is incurred by an exempt organization to acquire an income-producing asset, UBIT is applicable to that portion of the income or gain that is debt-financed, with some exceptions.

This type of income is often referred to as unrelated debt-financed income (UDFI).

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