To make sure that non-residents receiving income from the sale of real property in Hawai`i pay the necessary Hawai`i taxes on that income, state law mandates that the buyer of the property must withhold taxes on payments to the non-residents. To claim an exemption from the withholding requirement, the seller must provide the buyer with a certification, contained in Department of Taxation Form N-289, that the seller is exempt from the withholding.<\/p>\n
Reasons for exemption are as follows:<\/p>\n
First, that the seller is a resident (that is, a corporation that is legally doing business in Hawai`i, or a private resident individual); or<\/p>\n
Second, that a United States treaty allows for the exemption; or<\/p>\n
Third, that the property being transferred was used as a principal residence and that the sales price does not exceed $300,000.<\/p>\n
Whatever reason claimed for the exemption, the seller is required to provide the buyer with the seller’s address and taxpayer identification number (which can be either a Social Security number or a Federal Employee Identification number). This allows the state to track down the income to the party receiving it and — in theory, at least — the state will be able to collect all taxes due and owing on income from the sale.<\/p>\n
— Patricia Tummons<\/p>\n
Volume 5, Number 10 April 1995<\/p>\n","protected":false},"excerpt":{"rendered":"
To make sure that non-residents receiving income from the sale of real property in Hawai`i pay the necessary Hawai`i taxes on that income, state law mandates that the buyer of the property must withhold taxes on payments to the non-residents. … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[248],"tags":[],"class_list":["post-3592","post","type-post","status-publish","format-standard","hentry","category-april-1995"],"_links":{"self":[{"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=\/wp\/v2\/posts\/3592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3592"}],"version-history":[{"count":0,"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=\/wp\/v2\/posts\/3592\/revisions"}],"wp:attachment":[{"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/environment-hawaii.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}