Hawaii Form N 289 PDF Details

A crucial aspect of real estate transactions in Hawaii involves understanding and properly executing Form N-289, officially termed the Certification for Exemption from the Withholding of Tax on the Disposition of Hawaii Real Property. This form plays an essential role in facilitating the smooth transfer of property by providing a mechanism for certain sellers to certify their exemption from tax withholding requirements at the point of sale. Predominantly, this form is applicable to three categories of transactions: those involving resident sellers, transactions exempt under specific nonrecognition provisions of the Internal Revenue Code or U.S. treaties, and sales of principal residences that fall within specified financial thresholds. A notable feature of this process is that this declaration of exemption, although mandatory for qualifying sellers to complete and provide to buyers, does not require submission to the Hawaii Department of Taxation. The guidelines also spell out who may complete the form — including individuals, corporations, partnerships, trusts, and estates — underscoring the significance of accurate completion that requires detailed personal and transactional information. The form mandates disclosing the identity and status of the seller, along with a descriptive and legal rationale for the exemption claimed, thereby ensuring that all parties are well-informed and compliant with Hawaiian tax laws. Additionally, Form N-289 underscores the continual obligation of sellers to report the transaction on their income tax returns, despite the potential exemption from withholding. Instructions accompanying the form provide further clarification on these procedures, aiming to streamline the process for all involved parties while aligning with statutory requirements. Thus, Form N-289 serves as a critical tool in the conveyance of real property in Hawaii, embodying proactive measures to facilitate compliance, transparency, and fairness in property transactions.

QuestionAnswer
Form NameHawaii Form N 289
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesITINs, N-288, 425D, transferee

Form Preview Example

STATE OF HAWAII — DEPARTMENT OF TAXATION

Form N-289

(REV. 2008)

CERTIFICATION FOR EXEMPTION FROM THE

WITHHOLDING OF TAX ON THE DISPOSITION OF HAWAII

REAL PROPERTY

(To be completed by transferor/seller and given to transferee/buyer. The transferor/seller should NOT file Form N-289 with the Department of Taxation for approval.)

Section 235-68, Hawaii Revised Statutes (HRS), provides that a transferee/buyer of Hawaii real property must withhold tax if the transferor/seller is a non- resident person. To inform the transferee/buyer that withholding of tax is not required upon the disposition of Hawaii real property by

____________________________________________________ (name of transferor/seller), the undersigned hereby certifies the following:

Transferor/seller’s identification number (Last 4 numbers of the SSN or FEIN) _______________________________

Transferor/seller’s address (home address for individuals, office address for corporations, partnerships, trusts, or estates)

The withholding of tax is not required upon the disposition of Hawaii real property because (check whichever box is applicable):

1 The transferor/seller is a resident person as defined in section 235-68, HRS. Resident person means any: (1) Individual included in the definition of “resident” in section 235-1, HRS; (2) Corporation incorporated or granted a certificate of authority under Chapter 414, 414D, or 415A, HRS; (3) Partnership formed or registered under Chapter 425 or 425E*, HRS; (4) Foreign partnership qualified to transact business pursuant to Chapter 425 or 425E*, HRS; (5) Limited liability company formed under Chapter 428, HRS, or any foreign limited liability company registered under Chapter 428, HRS; provided that if a single member limited liability company has not elected to be taxed as a corporation, the single member limited liability company shall be disregarded for purposes of section 235-68, HRS, and section 235-68, HRS, shall be applied as if the sole member is the transferor; (6) Limited liability partnership formed under Chapter 425, HRS; (7) Foreign limited liability partnership qualified to transact business under Chapter 425, HRS; (8) Trust included in the definition of “resident trust” in section 235-1, HRS; or (9) Estate included in the definition of “resident estate” in section 235-1, HRS.

*Note: Chapter 425E, HRS, replaced chapter 425D, HRS, effective July 1, 2004.

2 That by reason of a nonrecognition provision of the Internal Revenue Code as operative under chapter 235, HRS, or the provisions of any United States treaty, the transferor/seller is not required to recognize any gain or loss with respect to the transfer. (See Instructions) (Complete A and B below.)

A. Brief description of the transfer:

B. Brief summary of the law and facts supporting the claim that recognition of gain or loss is not required with respect to the transfer:

3 For the year preceding the date of the transfer the property has been used by the transferor/seller as a principal residence, and that the amount realized for the property does not exceed $300,000. (See Instructions)

____________________________________________________ (name of transferor/seller) understands that this certification may be disclosed to the

State of Hawaii, Department of Taxation by the transferee/buyer and that any false statement contained herein could be punished by fine, imprisonment, or both.

I declare, under the penalties set forth in section 231-36, HRS, that this certification has been examined by me, and to the best of my knowledge and belief, it is true, correct, and complete. In the case of corporations, partnerships, trusts, or estates, I further declare that I have authority to sign this document on behalf of ____________________________________________________ (name of transferor/seller).

Signed:

_______________________________________

Print Name:

________________________________________________

Title:

_______________________________________

Date:

________________________________________________

Form N-289

INSTRUCTION

STATE OF HAWAII — DEPARTMENT OF TAXATION

FORM N-289

(REV. 2008)

Instructions for Form N-289

CERTIFICATION FOR EXEMPTION FROM THE WITHHOLDING OF TAX ON THE DISPOSITION OF HAWAII REAL PROPERTY

General Instructions

Purpose of Form

Use Form N-289 to inform the transferee/buyer that the with- holding of tax is not required upon the disposition of Hawaii real property if (1) the transferor/seller is a resident person, (2) by reason of a nonrecognition provision of the Internal Revenue Code as operative under chapter 235, HRS, or the provisions of any United States treaty, the transferor/seller is not required to recognize any gain or loss with respect to the transfer, or (3) for the year preceding the date of the transfer the property has been used by the transferor/seller as a principal residence, and that the amount realized for the property does not exceed $300,000.

Who Can Complete Form N-289

The transferor/seller can complete Form N-289.

Where to Send Form N-289

Form N-289 must be completed by the transferor/seller and given to the transferee/buyer. The transferor/seller should NOT file Form N-289 with the Department of Taxation for approval. The transferee/buyer is to retain Form N-289 and NOT forward it to the Department of Taxation if ALL the transferor/sellers have provided a certification of exemption on Form N-289 to the transferee/buyer. If one or more, but not all of the transferor/sell- ers has provided a certification of exemption on Form N-289 to the transferee/buyer, the transferee/buyer shall attach a copy of the Form N-289 to Forms N-288 and N-288A, which must still be filed with the Department of Taxation.

Specific Instructions

At the top of Form N-289, enter the transferor/seller’s name, identification number (last 4 numbers of the social security number, individual identification number or federal I.D. number), and address. The Internal Revenue Service (IRS) issues Indi- vidual Taxpayer Identification Numbers (ITINs) to certain aliens who are required to have a U. S. taxpayer identification number but who do not have, and are not eligible to obtain, a social secu- rity number. The ITIN issued by the IRS must be used as the in- dividual’s identification number. If the individual has applied for an ITIN but the IRS has not yet issued the ITIN, write “Applied For”.

Check the applicable box to indicate the reason the withhold- ing of tax is not required upon the disposition of Hawaii real property.

Box number 1. Check box number 1 if the transferor/seller is a resident person as defined in section 235-68, HRS.

Box number 2. Check box number 2 if by reason of a nonrecognition provision of the Internal Revenue Code as oper- ative under chapter 235, HRS, or the provisions of any United States treaty, the transferor/seller is not required to recognize any gain or loss with respect to the transfer. Complete sections A and B requesting a brief description of the transfer and a brief summary of the law and facts supporting the claim that recogni- tion of gain or loss is not required with respect to the transfer.

NOTE: If the withholding of tax is not required upon the dispo- sition of Hawaii real property because the disposition qualifies for the exclusion of gain from the sale of a principal residence under Internal Revenue Code section 121, check box number 2.

Box number 3. Check box number 3 if for the year preceding the date of the transfer the property has been used by the trans- feror/seller as a principal residence, and the amount realized for the property does not exceed $300,000. The "amount realized" means the sum of the cash paid, or to be paid (not including in- terest or original issue discount), the fair market value of other property transferred or to be transferred, and the amount of any liability assumed by the transferee/buyer or to which the Hawaii real property interest is subject to immediately before and after the transfer. Generally, the amount realized, for purposes of this withholding, is the sales or contract price.

NOTE: Although the withholding of tax may not be required upon the disposition of Hawaii real property, the trans- feror/seller is required under section 235-92, HRS, to file an in- come tax return to report the sale or other disposition.

Signature

Form N-289 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-289 may be signed by an authorized agent with a power of attorney.

Where to Get Information

Taxpayer Services Branch

P. O. Box 259

Honolulu, HI 96809-0259

Tel. No.: 808-587-4242

Toll Free: 1-800-222-3229

How to Edit Hawaii Form N 289 Online for Free

You may work with 425D without difficulty by using our PDFinity® online PDF tool. FormsPal team is focused on making sure you have the perfect experience with our tool by constantly releasing new features and enhancements. Our editor has become even more user-friendly as the result of the latest updates! Currently, editing PDF documents is a lot easier and faster than ever. Here's what you will want to do to get going:

Step 1: First, open the pdf tool by clicking the "Get Form Button" in the top section of this page.

Step 2: With this handy PDF editing tool, you are able to do more than simply fill in blanks. Express yourself and make your forms look faultless with customized textual content added, or tweak the original content to perfection - all supported by an ability to incorporate any type of photos and sign the file off.

This document requires specific information; in order to guarantee consistency, be sure to take heed of the next guidelines:

1. The 425D will require specific details to be entered. Ensure the next fields are completed:

Guidelines on how to prepare online tarslist step 1

2. Just after finishing the previous step, go on to the subsequent step and enter the necessary details in these blank fields - The transferorseller is a resident, That by reason of a nonrecognition, A Brief description of the transfer, B Brief summary of the law and, For the year preceding the date of, name of transferorseller, State of Hawaii Department of, and I declare under the penalties set.

online tarslist writing process clarified (portion 2)

3. The following portion will be focused on Signed, Print Name, Title, Date, and Form N - fill out these blank fields.

Filling out part 3 in online tarslist

It is easy to make errors when filling in the Signed, so make sure that you go through it again before you submit it.

Step 3: After looking through the form fields you have filled out, click "Done" and you are all set! Make a free trial option with us and get instant access to 425D - download or edit from your FormsPal account. Here at FormsPal, we do our utmost to ensure that all of your information is kept private.

Hawaii Form N 289 isn’t the one you’re looking for?

Related Documents