Refund of Hawaii sales tax on sale of WKORV-N

[boisebruin]

We just sold our unit and were charged a sales tax by Hawaii. There is a form to fill out for a refund. Anyone do this before? Were you successful in getting the refund? Thanks.

 

[Fredm]

We just sold our unit and were charged a sales tax by Hawaii. There is a form to fill out for a refund. Anyone do this before? Were you successful in getting the refund? Thanks.

You are being charged a 7.5% non-resident withholding tax (HARPTA).
If you sold it for less than you paid, you should complete Form 288b (non-resident tax waiver request).
The escrow agent should submit it and a tax waiver will be issued, thereby eliminating the withholding.
If you have already closed escrow, you will need to file a Hawaii State tax return for the refund.

 

[boisebruin]

You are being charged a 7.5% non-resident withholding tax (HARPTA).
If you sold it for less than you paid, you should complete Form 288b (non-resident tax waiver request).
The escrow agent should submit it and a tax waiver will be issued, thereby eliminating the withholding.
If you have already closed escrow, you will need to file a Hawaii State tax return for the refund.

Thanks Fredm. We sold for more than we paid so I guess there is no recourse in that case?

 

[Fredm]

Thanks Fredm. We sold for more than we paid so I guess there is no recourse in that case?

Well, you must pay tax on the profit. Hawaii is withholding 7.25% on the entire sale amount. You will have to calculate (and file a tax return) if they own you a partial refund.

BTW, this is not a sales tax. It is Hawaii State income tax, specifically a real estate capital gain.

 

[darius]

We just sold our unit and were charged a sales tax by Hawaii. There is a form to fill out for a refund. Anyone do this before? Were you successful in getting the refund? Thanks.

We sold our WKORN-N unit for a profit as well, and had to fill out the form and have a portion of our sale held by the state of Hawaii. I wasn't expecting it to come back, however they did refund the amount to us when we filed our taxes. Our CPA did a simple Hawaii state form and the money was promptly refunded when we filed out taxes.