Form N-288 "Hawaii Withholding Tax Return for Dispositions by Nonresident Persons of Hawaii Real Property Interests" - Hawaii

What Is Form N-288?

This is a legal form that was released by the Hawaii Department of Taxation - a government authority operating within Hawaii. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on January 1, 2018;
  • The latest edition provided by the Hawaii Department of Taxation;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form N-288 by clicking the link below or browse more documents and templates provided by the Hawaii Department of Taxation.

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Download Form N-288 "Hawaii Withholding Tax Return for Dispositions by Nonresident Persons of Hawaii Real Property Interests" - Hawaii

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Clear Form
FORM
STATE OF HAWAII—DEPARTMENT OF TAXATION
N-288
HAWAII WITHHOLDING TAX RETURN FOR
2021
(REV. 2020)
DISPOSITIONS BY NONRESIDENT PERSONS
OF HAWAII REAL PROPERTY INTERESTS
Complete Lines 1 - 6.
(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)
(Copy A of Form(s) N-288A and your check or money order MUST be attached.)
To Be Completed by the Transferee/Buyer Required to Withhold
1
Name of transferee/buyer
Transferee/Buyer’s SSN or FEIN
Address (number and street)
City, State, and Postal/ZIP Code (province, postal code, and country)
2
Description and location of property acquired (Include tax map key number)
3 Date of transfer
4 Number of Forms N-288A attached
5 Total Amount realized on the transfer
6 Total Amount withheld
Please
I hereby declare under penalties provided by section 231-36, HRS, that I have examined this return and accompanying attachments, and, to the best of my knowledge and belief, they are
true, correct, and complete. Declaration of preparer (other than individual, partner or member, fiduciary, or corporate officer) is based on all information of which preparer has any knowledge.
Sign
Here
h _______________________________________________
_______________________________
____________________
Signature of transferee/buyer (individual, partner or member, fiduciary, or corporate officer)
Title (if applicable)
Date
Paid
Date
Preparer’s identification number
Check if
ä
Preparer’s signature
ä
self-employed
Print preparer’s name
Preparer’s
ä
Firm’s name (or
Federal E.I. No.
ä
Use Only
yours if self-employed),
ä
Phone No.
address, and Postal/ZIP Code
General Instructions
first, determine the amount subject to withholding
the State of Hawaii, Department of Taxation (De-
by allocating the amount realized from the transfer
partment).
Purpose of Form
among the transferors/sellers based on their capi-
When to File
tal contribution to the property. For this purpose, a
A 7.25% withholding obligation is generally
A transferee/buyer must report and transmit to
taxpayer and spouse are treated as having con-
imposed on the transferee/buyer when a Hawaii
the Department the tax withheld by the 20th day
tributed 50% each. Second, withhold on the total
real property interest is acquired from a nonresident
after the date of transfer. Timely mailing of Forms
amount allocated to nonresident transferors/sell-
person. This withholding serves to collect Hawaii
N-288 and N-288A by U.S. mail will be treated as
ers. Third, credit the amount withheld among the
income tax that may be owed by the nonresident
timely filing.
nonresident transferors/sellers as they mutually
person. Use this form to report and transmit the
Hawaii has adopted the Internal Revenue Code
agree. The transferors/sellers must request that the
amount withheld.
(IRC) provision to allow documents and payments
withholding be credited as agreed upon by the 10th
Note: You are not required to withhold if any
delivered by a designated private delivery service
day after the date of transfer. If no agreement is
of the exceptions listed on page 2 apply.
to qualify for the “timely mailing treated as timely
reached, credit the withholding by evenly dividing it
See Tax Facts 2010-1, Understanding HARPTA,
filing/paying rule.” The Department will conform to
among the nonresident transferors/sellers.
and Tax Information Release No. 2017-01, With-
the Internal Revenue Service (IRS) listing of desig-
Who Must File
holding of State Income Taxes on the Disposition
nated private delivery service and type of delivery
of Hawaii Real Property, for more information.
A transferee/buyer of a Hawaii real property
services qualifying under this provision. Timely fil-
Amount to Withhold
interest, including an individual, corporation, part-
ing of mail which does not bear the U.S. Post Office
nership, or fiduciary, must file Form N-288 to report
cancellation mark or the date recorded or marked
Generally, you must withhold 7.25% of the
and transmit the amount withheld. If two or more
by the designated delivery service will be deter-
amount realized on the disposition by the trans-
persons are joint transferees/buyers, each of them
mined by reference to other competent evidence.
feror. See Amount realized under Definitions, later.
is obligated to withhold. However, the obligation of
The private delivery service can tell you how to get
Joint Transferors/Sellers.—If one or more
each will be met if one of the joint transferees/buy-
written proof of the mailing date.
nonresident persons and one or more resident per-
ers withholds and transmits the required amount to
sons jointly transfer a Hawaii real property interest,
FORM N-288 (REV. 2020)
ID NO 01
N288_I 2020A 01 VID01
Clear Form
FORM
STATE OF HAWAII—DEPARTMENT OF TAXATION
N-288
HAWAII WITHHOLDING TAX RETURN FOR
2021
(REV. 2020)
DISPOSITIONS BY NONRESIDENT PERSONS
OF HAWAII REAL PROPERTY INTERESTS
Complete Lines 1 - 6.
(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)
(Copy A of Form(s) N-288A and your check or money order MUST be attached.)
To Be Completed by the Transferee/Buyer Required to Withhold
1
Name of transferee/buyer
Transferee/Buyer’s SSN or FEIN
Address (number and street)
City, State, and Postal/ZIP Code (province, postal code, and country)
2
Description and location of property acquired (Include tax map key number)
3 Date of transfer
4 Number of Forms N-288A attached
5 Total Amount realized on the transfer
6 Total Amount withheld
Please
I hereby declare under penalties provided by section 231-36, HRS, that I have examined this return and accompanying attachments, and, to the best of my knowledge and belief, they are
true, correct, and complete. Declaration of preparer (other than individual, partner or member, fiduciary, or corporate officer) is based on all information of which preparer has any knowledge.
Sign
Here
h _______________________________________________
_______________________________
____________________
Signature of transferee/buyer (individual, partner or member, fiduciary, or corporate officer)
Title (if applicable)
Date
Paid
Date
Preparer’s identification number
Check if
ä
Preparer’s signature
ä
self-employed
Print preparer’s name
Preparer’s
ä
Firm’s name (or
Federal E.I. No.
ä
Use Only
yours if self-employed),
ä
Phone No.
address, and Postal/ZIP Code
General Instructions
first, determine the amount subject to withholding
the State of Hawaii, Department of Taxation (De-
by allocating the amount realized from the transfer
partment).
Purpose of Form
among the transferors/sellers based on their capi-
When to File
tal contribution to the property. For this purpose, a
A 7.25% withholding obligation is generally
A transferee/buyer must report and transmit to
taxpayer and spouse are treated as having con-
imposed on the transferee/buyer when a Hawaii
the Department the tax withheld by the 20th day
tributed 50% each. Second, withhold on the total
real property interest is acquired from a nonresident
after the date of transfer. Timely mailing of Forms
amount allocated to nonresident transferors/sell-
person. This withholding serves to collect Hawaii
N-288 and N-288A by U.S. mail will be treated as
ers. Third, credit the amount withheld among the
income tax that may be owed by the nonresident
timely filing.
nonresident transferors/sellers as they mutually
person. Use this form to report and transmit the
Hawaii has adopted the Internal Revenue Code
agree. The transferors/sellers must request that the
amount withheld.
(IRC) provision to allow documents and payments
withholding be credited as agreed upon by the 10th
Note: You are not required to withhold if any
delivered by a designated private delivery service
day after the date of transfer. If no agreement is
of the exceptions listed on page 2 apply.
to qualify for the “timely mailing treated as timely
reached, credit the withholding by evenly dividing it
See Tax Facts 2010-1, Understanding HARPTA,
filing/paying rule.” The Department will conform to
among the nonresident transferors/sellers.
and Tax Information Release No. 2017-01, With-
the Internal Revenue Service (IRS) listing of desig-
Who Must File
holding of State Income Taxes on the Disposition
nated private delivery service and type of delivery
of Hawaii Real Property, for more information.
A transferee/buyer of a Hawaii real property
services qualifying under this provision. Timely fil-
Amount to Withhold
interest, including an individual, corporation, part-
ing of mail which does not bear the U.S. Post Office
nership, or fiduciary, must file Form N-288 to report
cancellation mark or the date recorded or marked
Generally, you must withhold 7.25% of the
and transmit the amount withheld. If two or more
by the designated delivery service will be deter-
amount realized on the disposition by the trans-
persons are joint transferees/buyers, each of them
mined by reference to other competent evidence.
feror. See Amount realized under Definitions, later.
is obligated to withhold. However, the obligation of
The private delivery service can tell you how to get
Joint Transferors/Sellers.—If one or more
each will be met if one of the joint transferees/buy-
written proof of the mailing date.
nonresident persons and one or more resident per-
ers withholds and transmits the required amount to
sons jointly transfer a Hawaii real property interest,
FORM N-288 (REV. 2020)
ID NO 01
N288_I 2020A 01 VID01
FORM N-288
(REV. 2020)
PAGE 2
Where to File
is the transferor; (6) Limited liability partnership
3) For the year preceding the date of the transfer
formed under chapter 425, HRS; (7) Foreign limited
the property has been used by the transferor/
Mail Form N-288, Copy A of Form(s) N-288A,
liability partnership qualified to transact business
seller as a principal residence, and that the
and your check or money order to:
under chapter 425, HRS; (8) Trust included in the
amount realized for the property does not ex-
Hawaii Department of Taxation
definition of “resident trust” in section 235-1, HRS;
ceed $300,000.
P.O. Box 1530
or (9) Estate included in the definition of “resident
If you receive a certification, you cannot with-
Honolulu, Hawaii 96806-1530
estate” in section 235-1, HRS.
hold any tax, unless you know that the certifica-
Form(s) N-288A and Your Check or
Transferee/Buyer means any person, the
tion is false. The certification must be signed by the
Money Order Must Be Attached
State and the counties and their respective subdi-
individual, a responsible officer of a corporation, a
visions, agencies, authorities, and boards, acquir-
member or general partner of a partnership, or the
Anyone who completes Form N-288 must also
ing real property which is located in Hawaii.
trustee, executor, or equivalent fiduciary of a trust
complete a Form N-288A, Statement of Withhold-
Transferor/Seller means any person dispos-
or estate.
ing on Dispositions by Nonresident Persons of Ha-
Belated notice or false certification.—If af-
ing real property which is located in Hawaii.
waii Real Property Interests, for each nonresident
Amount realized means the sum of the cash
ter the date of transfer you receive notice that the
transferor/seller subject to withholding.
certification you received is false, you can rely on
paid, or to be paid (not including interest or origi-
If two or more nonresident transferors/sellers
the certification and not withhold on consideration
nal issue discount), the fair market value of other
jointly transfer a Hawaii real property interest, pre-
paid before you received the notice. However, you
property transferred or to be transferred, and the
pare a separate Form N-288A for each nonresident
must withhold the full 7.25% of the amount real-
amount of any liability assumed by the transferee/
transferor/seller. A separate Form N-288A should
ized from any consideration that remains to be
buyer or to which the Hawaii real property interest
also be prepared for both taxpayer and spouse
paid, if possible. You must do so by withholding and
is subject to immediately before and after the trans-
whether or not they will be filing a joint return for
paying over the entire amount of each successive
fer. Generally, the amount realized, for purposes of
the year in which they transferred their Hawaii real
payment of consideration until the full 7.25% has
this withholding, is the sales or contract price.
property interest. Copy A and your check or money
been withheld and paid to the Department. These
Date of transfer means the first date on which
order must be attached to Form N-288. Copy B
amounts must be reported and transmitted to the
consideration is paid or a liability is assumed by the
must be sent to the transferor/seller. Copy C is for
Department by the 20th day following the date of
transferee/buyer. Payment of consideration does
your records. To receive credit for the amount with-
each payment.
not include the payment, before the passage of le-
held, the transferor/seller must file a Hawaii income
Withholding Certificate Issued by
gal or equitable title (other than pursuant to an ini-
tax return.
the Department of Taxation
tial purchase contract), of earnest money, a good-
Penalties
faith deposit, or any similar sum primarily intended
A withholding certificate may be issued by the
In addition to the penalties provided under sec-
to bind the parties to the contract and subject to
Department to reduce or eliminate withholding on
tions 231-34, 231-35, 231-36, and 231-39, Hawaii
forfeiture. However, a payment that is not forfeitable
dispositions of Hawaii real property interests by
Revised Statutes (HRS), if a person is required but
may nevertheless be found to constitute earnest
nonresident persons. The certificate may be issued
fails to withhold tax under section 235-68, HRS,
money, a good-faith deposit, or a similar sum.
if 1) the transferor/seller will not realize any gain
that person is made liable for the tax.
An individual’s Identification number is the
with respect to the transfer, or 2) there will be in-
Definitions
social security number. The IRS issues Individual
sufficient proceeds to pay the withholding required
Taxpayer Identification Numbers (ITINs) to certain
Nonresident person means every person
after payment of all costs.
aliens who are required to have a U.S. taxpayer
other than a resident person.
Attach a copy of the approved Form N-288B,
identification number but who do not have, and are
Property or real property means all land and
Application for Withholding Certificate for Disposi-
not eligible to obtain, a social security number. The
tions by Nonresident Persons of Hawaii Real Prop-
appurtenances thereof and the buildings, struc-
ITIN issued by the IRS must be used as the indi-
erty Interests.
tures, fences, and improvements erected on or af-
vidual’s identification number. If the individual has
Specific Instructions
fixed to the land, and any fixture which is erected
applied for an ITIN but the IRS has not yet issued
on or affixed to the land, buildings, structures, fenc-
the ITIN, write “Applied For.” For any other person,
Lines 1.—Enter the name and identification
es, and improvements, including all machinery and
the identification number is the federal employer
number (social security number (SSN) or federal
other mechanical or other allied equipment and the
identification number (FEIN). For a single member
employer identification number (FEIN)) of the
foundations thereof, whose use is necessary to
LLC that has not elected to be taxed as a corpora-
transferee/buyer. Enter the home address of the
the utility of the land, buildings, structures, fences,
tion, where the only member is an individual, the
individual or the office address of the entity.
and improvements, or whose removal therefrom
identification number would be the social security
Lines 2.—Enter a description of the property
cannot be accomplished without substantial dam-
number of the individual. For a revocable living
age to the land, buildings, structures, fences, and
including its location and the nature of any sub-
trust, or any other trust in which an individual is
improvements, excluding, however, any growing
stantial improvements, such as an apartment
treated as the owner of the trust, the identification
building or warehouse. Include the tax map key
crops.
number would be the social security number of
number.
Resident person means any: (1) Individual
the individual. For all other trusts, the identification
Line 5.—Enter the amount realized. If the trans-
included in the definition of “resident” in section
number would be the FEIN of the trust.
feror/seller is reporting the gain under the in-
235-1, HRS; (2) Corporation incorporated or
Exceptions
granted a certificate of authority under chapter
stallment method, (i.e., agreement of sales or
You are not required to withhold if the transfer-
414, 414D, or 415A, HRS; (3) Partnership formed
purchase money mortgages) enter the principal
or/seller furnishes to you Form N-289, Certification
portion of the total payments for the year.
or registered under chapter 425 or 425E*, HRS; (4)
for Exemption from the Withholding of Tax on the
Line 6.—Enter the amount withheld. If the amount
Foreign partnership qualified to transact business
Disposition of Hawaii Real Property, stating that:
pursuant to chapter 425 or 425E*, HRS; (5) Limited
required to be withheld has been reduced or
liability company formed under chapter 428, HRS,
1) The transferor/seller is a resident person, or
waived by the Department, attach a copy of the
or any foreign limited liability company registered
approved Form N-288B. Also, if one or more of
2) That by reason of a nonrecognition provision
under chapter 428, HRS; provided that if a single
the transferors/sellers are exempt from the with-
of the IRC as operative under chapter 235,
member limited liability company has not elected
holding and you are issuing the exempt trans-
HRS, or the provisions of any United States
to be taxed as a corporation, the single member
feror/seller a Form N-288A, attach a copy of the
treaty, the transferor/seller is not required to
limited liability company shall be disregarded for
exempt transferor/seller’s Form N-289.
recognize any gain or loss with respect to the
purposes of section 235-68, HRS, and section 235-
transfer, or
68, HRS, shall be applied as if the sole member
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