Form N 288C – Fill Out and Use This PDF

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I hereby declare under penalties provided by section 231-36, HRS, that I have examined this application and accompanying attachments, and, to the best of my knowledge and belief, they are true, correct, and complete.

FORM N-288C INSTRUCTIONS (REV. 2014)

General Instructions

Purpose of Form

Use Form N-288C to apply for a refund of the amount withheld on dispositions by nonresident persons of Hawaii real property interests which is in excess of the transferor/seller’s tax liability for the transaction. Form N-288C should be filed if the Hawaii income tax return (Form N-15, N-20, N-30, N-35, or N-40) for the year is not yet available. If available, the transferor/seller should file the appropriate tax return instead of filing Form N-288C. Also, Form N-288C will be rejected if it is filed after the due date of the tax return.

IMPORTANT: If Form N-288C was filed, the transferor/seller must still file a Hawaii income tax return (Form N-15, N-20, N-30, N-35, or N-40) after the end of the taxable year, report the entire income for the year (from other sources as well as the trans- action), and pay any additional tax due on the income or request a refund.

Who May File an Application

The transferor/seller may file Form N-288C.

NOTE: Under Section 235-111, Hawaii Re- vised Statutes, any claim for credit or refund of an overpayment of taxes must be filed within three years from the due date of the

return, or within two years from the time the tax was paid, whichever is later.

Where to Send Form N-288C

File Form N-288C with the Hawaii Department of Taxation. See the front of the form for the mailing address.

Specific Instructions

NOTE: Before you begin to fill in Form N- 288C, you should review the notification you received from the Department of Taxation that we have received your withholding pay- ment to make sure that the information con- tained in it is correct. If any information is not correct, please return a copy of the notifica- tion to the Department of Taxation with the corrected information.

At the top of Form N-288C, enter the taxable year of the transferor/seller if it is other than a calendar year.

Also, enter the name, address, and identification number (social security number or federal employer I.D. number), if any, of the transferor/seller applying for a refund of the amount withheld. The name and identification number entered MUST be the same as the name and identification number entered for the transferor/seller on Form N-288A, or as corrected on the copy of the notification you returned to the Department of Taxation. If the transferor/seller was

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issued an individual taxpayer identification number (ITIN) by the IRS, enter the ITIN. If the individual has applied for an ITIN but the IRS has not yet issued the ITIN, write “Applied For”.

Also, enter the information describing the Hawaii real property transaction. In b, enter the address and description of the property. In c, enter the tax map key number.

Line 2. Enter the gross sales price from the sale. Attach a copy of your closing escrow statement from your sale of this property.

Line 3. In general, the cost or adjusted basis is the cost of the property plus purchase commis- sions and improvements, minus depreciation (if applicable). Increase the cost or other basis by any expense of sale, such as commissions and state transfer taxes. Complete the Computation of cost or other basis worksheet below and enter the amount from line 4 onto the front of Form N- 288C, line 3.

Line 4. Line 2 minus line 3. However, if you are reporting the gain under the installment method, attach a separate sheet showing the principal payments received during the taxable year and the gross profit percentage. Multiply the amount of the principal payments by the gross profit per- centage and enter the result onto the front of Form N-288C, line 4.

Line 5. If you are a C corporation, multiply line 4 by 4% and enter the result on line 5. If you are a

2015 Tax Rate Schedules

Schedule I

SINGLE INDIVIDUALS AND MARRIED INDIVIDUALS FILING SEPARATE RETURNS

Schedule II

MARRIED INDIVIDUALS FILING JOINT RETURNS AND CERTAIN WIDOWS AND WIDOWERS

person other than a C corporation, you must use the tax rate schedules to the left to determine the amount to enter on line 5.

Note: These tax rates apply to long-term cap- ital gains. For short-term capital gains, use the tax rates in the 2014 income tax booklets to determine the amount to enter on line 5.

For partnerships, S corporations, trusts, or estates, the gain on line 4 must be allocated among each partner or member, S corporation shareholder, or beneficiary of the trust or estate. Calculate the tax liability for each partner or member, S corporation shareholder, or beneficiary of the trust or estate. Enter the total tax liability of all partners or members, S corporation shareholders, or beneficiaries of the trust or estate on line 5. Attach a schedule showing the name, identification number, and the amount of gain and tax liability allocated to each partner or member, S corporation shareholder, or beneficiary of the trust or estate. Also, show the computation of the tax liability for each partner or member, S corporation shareholder, or beneficiary of the trust or estate.

Signature

Form N-288C must be signed by an individual, a responsible corporate officer, a member or general partner of a partnership, or a trustee, executor, or other fiduciary of a trust or estate. In addition, Form N-288C may be signed by an authorized agent with a power of attorney. If you file your income tax return as married filing a joint return, your spouse must also sign this form.

NOTE: Incomplete forms will be returned to the transferor/seller. Please fill out all items.