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.

Does your organization have unrelated business income?

Even though an organization is recognized as tax-exempt, it still may be liable for tax on its unrelated business taxable income.

The unrelated business income tax (UBIT) is not a penalty imposed on tax-exempt organizations. It is a tax designed to level the playing field when it is perceived that tax-exempt organizations are competing with commercial businesses.

An exempt organization that has $1,000 or more gross income from an unrelated business must file Form 990-T, Exempt Organization Business Income Tax Return.

The tax is generally imposed on net income from the unrelated business activity at rates applicable to corporations, ranging from 15-35 percent. To calculate the net profit, the tax-exempt organization can reduce the gross income by expenses incurred in conducting the business activity.

Any tax due with Form 990-T is generally referred to as the unrelated business income tax. For most tax-exempt organizations, an activity is an unrelated business and subject to UBIT if it meets three requirements...

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