SELLERS INFORMATION

Sell My House

Please Call Us!

Anita White: (808) 345 - 7954

Lori Powers: (808) 344 - 4427

You can also fill out the form below if you are interested in selling your house. We will get back to you as soon as possible. Mahalo!

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Maui Property Tax

Classification Taxable Land per/ $1,000 Taxable Building per/ $1,000
A. Residential $5.30 $5.30
B. Apartment $6.00 $6.00
C. Commercial $6.60 $6.60
D. Industrial $6.69 $6.69
E. Agricultural $5.66 $5.66
F. Conversation $5.80 $5.80
G. Hotel & Reservation $8.71 $8.71
H. Time Share $14.31 $14.31
I. Homeowner $2.70 $2.70
J. Commercialized Residential $4.35 $4.35

FIRPTA & HARPTA

What is “FIRPTA”?

“FIRPTA” stands for the Foreign Investment in Real Property Tax Act, a federal law.

General Rule

Under the FIRPTA withholding provisions of Code Section 1445, the buyer or transferee of any U.S. real property interest is required to (i) withhold and deduct a tax equal to 10% of the amount realized by the seller or transferor upon the disposition of the property regardless of the amount of cash otherwise present in the transaction and (ii) file Forms 8288 and 8288-A to report and transmit the amount withheld to the Internal Revenue Service (“IRS”), unless one of five exemptions applies. However, the transferee’s compliance with the withholding requirement does not relieve the transferor from its FIRPTA tax liability. The withholding tax is designed only to approximate the transferor’s tax on net gain and such transferor would still be required to file a federal income tax return with the IRS for the year in which the sale occurs and either (i) obtain a refund of any amount over withheld or (ii) make additional payments required in excess of the amount of tax previously withheld.

What is “HARPTA”?

“HARPTA” stands for the Hawaii Real Property Tax Act, a state law.

General Rule

Under the Hawaii withholding requirement, the buyer or transferee of any Hawaii real estate is required to (i) withhold and deduct a tax equal to 5% of the amount realized by the seller or transferor upon the disposition of the property and (ii) file Forms N-288 and N-288A to report and transmit the amount withheld to the Hawaii Department of Taxation within 20 days of escrow closing, unless one of four exemptions apply.

Internal Revenue Service Tax forms and instructions are available at: www.irs.gov

State of Hawaii Tax forms and instructions are available at: www.state.hi.us/tax/a1_forms.htm

HOMEOWNER'S EXEMPTION:

The deadline for filing an exemption claim is on or before December 31.

Go to: http://www.co.maui.hi.us/index.aspx?NID=578 to find out who may qualify

for a homeowner's exemption on their property taxes.

Alert: FIRPTA-New 15% Withholding

 

Under current federal law, if a foreign person sells US real property, the buyer is obligated to withhold 10% of the gross sales price and remit this to the lRS.

However, pursuant to the Protecting Americans from Tax Hikes Act of 2015, which became law on December 18, 2015 (the “PATH Act”) the required 10% withholding will increase to 15% for ALL CLOSINGS OCCURRING ON OR AFTER FEBRUARY 17, 2016, except those wherein the sales price is greater than $300,000 and does not exceed $1,000,000 and the buyer acquires the property for use as a personal residence. Under the circumstance, a reduced withholding of 10% will apply.

 

Sales Price $300,000 or less and the buyer acquires as personal residence No Withholding
Sales Price more than $300,000 but not more than $1,000,000 and the buyer acquires as personal residence 10% Withholding
All transactions - Any Sales Price and the buyer NOT acquiring as personal residence 15% Withholding

In short, if a foreign person is selling a US real property interest, the following parameters apply

UNLESS THERE IS AN EXCEPTION FROM WITHOLDING:

No withholding is required under the following circumstances:

  • Buyer acquires for use as a personal residence and sales price not more than $300,000.
  • Seller provides Non-Foreign Affidavit
  • Seller provides a Withholding Certificate from the IRS which excuses the withholding
  • The amount realized by the seller is zero
  • The property is acquired by the United States or a political subdivision thereof

Hawaii Conveyance Tax Law

In reference to Act 59 of the 2009 Session Laws, amendment to § 247-2 Basis and rate of tax of the Hawaii Revised Statutes: The tax imposed by section 247-1 shall be based on the actual and full consideration (whether cash or otherwise, including any promise, act, forbearance, property interest, value, gain, advantage, benefit, or profit), paid or to be paid, for all transfers or conveyance of realty or any interest therein, that shall include any liens or encumbrances thereon at the time of sale, lease, sublease, assignment, transfer, or conveyance, and shall be at the following rates shown in below table.

Conveyance Tax:

At Least: But Less than
$0 $600,000
$600,000  $1 million
$1 million $2 million
$2 million $4 million
$4 million $6 million
$6 million $10 million

$10 million and above

Scale #1:

Applies to all transfers or conveyance of realty or any interest therein, except for a sale of a condominium or single family residence where the purchaser is not eligible for the county

homeowner’s exemption. (per $100)  

Scale #2:

 Applies to sales of condominium or single family residence where the purchaser is not eligible for the county homeowner’s exemption. (per $100)

10¢ 15¢
20¢ 25¢
30¢ 40¢
50¢ 60¢
70¢ 85¢
90¢ $1.10
$1.00 $1.25

How to Have a Great Garage Sale

You’ve done your spring cleaning and cleaned out your closets. Here’s a great way to recycle those unwanted goods and turn a profit!

What to sellShoppers like to see a little bit of everything. Never underestimate the value of absolute junk. If you haven’t used some-thing in the past year, sell it. Dealers and antique collectors frequent garage sales, so clearly display one-of-a-kind items. Dressers, bookcases, baskets, tables, toys, and tools attract traffic. Make sure appliances work. Have an outlet handy so items can be tested.

How to price: Tag all items. Customers may assume that unmarked items are out of their price range. Be prepared to haggle. Most garage sale experts say 10 to 30% of retail is a fair price.

How to advertise:

Place an ad in a newspaper. If you partner with neighbors, you can usually split the cost. Make bold, bright, neatly lettered signs. Place them in order to direct traffic to your house.

(Don’t forget to take them down when the sale is over!)

Advertise your sale!

Maui News: www.MauiNews.com

Craigslist: www.craigslist.com

Lahaina News:  808-667-7866

How to display: Clean everything. Dirty dishes fetch a far lower price than their clean counterparts. Large items bring the most foot traffic. If you sell a couch or table early in the day, ask to keep the item with a “sold” sign on it until the end of the day. Hang a line in your garage or buy a portable rack. Clearly mark your sales area. If you have a sale in your garage, cover anything you want to keep.

When to sell: Saturday is often the best day for a sale, but in some places, people favor Thursday and Friday sales. If you are new to an area, ask around.

What to do with leftovers:

Store them for another day. What didn’t sell now may be in high demand next year. Give them away. Have them picked up by a charitable organization. Keep a list of donated items for your accountant at tax time.

Donate leftovers to charity:

Big Brothers-Big Sisters Foundation, Inc.

http://www.bbbshawaii.org/maui.html

Goodwill Industries of Hawaii

www.higoodwill.org/shop-donate/donate

 The Salvation Army www.4satruck.org/DonateGoods

Women Helping Women. http://www.womenhelpingwomenmaui.com

Count Down to Moving Day…

Eight Weeks Before

  1. Call moving companies for estimates remove and dispose of unnecessary possessions
  2. Start compiling an inventory of your possessions
  3. Get a floor plan of your new home to help you decide which furnishings you want to keep and which room they will go
  4. Start a file of moving related papers and receipts
  5. Locate schools
  6. Healthcare professionals and
  7. Hospitals in your new location
  8. Arrange to transfer your children's school records and family medical records

Six Weeks Before

  1. Secure off-site storage if needed
  2. Choose a mover and sign contract
  3. Connect contact your homeowners insurance agent about coverage for moving and secure more if necessary
  4. Contact insurance companies (auto home insurance medical and life) to arrange for coverage in your new home

Four weeks before

  1. Create a list of important papers such as: auto insurance, license registration documents and title; if any medical, dental or school records; birth certificates; wills, deeds, stock certificates and other financial documents.
  2. Notify the following of your change of address (post office, banks, credit card companies, relatives and friends, insurance agent, lawyer tax financial advisor, magazine subscriptions )
  3. Notify utility companies to date to discontinue transfer service and or establish service in your new home. Also arrange for final readings and billing, including: refunds unprepared services electric, heating oil, internet service, natural gas, telephone, television, trash collection, water.
  4. Notify state DMV of your new address
  5. If moving from an apartment arrange for a refund of security deposit

Three Weeks Before

  1. Discontinue additional home services housekeeping, gardener, lawn service, and pool cleaner, if applicable
  2. Start using up things you can't move such as perishables.
  3. Make travel plans if necessary
  4. Make assignments with condo or homeowners association to reserve elevator usage time of moving into or out of a new high-rise building
  5. Arrange to close existing bank accounts and open new accounts in new area arrange to close existing
  6. Arrange for childcare on moving day

Two Weeks Before

  1. Arrange special transportation for your pets and plants
  2. Contact a moving company and review arrangements for your move

One Week Before

  1. Pack moving essential boxes - important documents, travel clothes, personal items and prescription medications

Checklist to Move Your Pet to Hawaii

CONTACT US TO LEARN HOW WE CAN ADVERTISE YOUR HOME TO THE MOST QUALIFIED BUYERS IN THE WORLD