HARPTA Waivers and Reductions
The amount withheld for HARPTA for nonresident sellers of Hawaii real estate is significant!
At 7.25% of the gross selling price, it is more than the commissions you pay to your own agent and the buyer's agent combined. It far exceeds what you will pay in escrow fees. It's even more than your transfer taxes.
However, it's possible that you're entitled to a waiver of HARPTA. If you are selling at a tax loss, you may be able to get a waiver of HARPTA. Or if you are being told to bring cash to closing in order to sell your home, you may be eligible to get a reduction in HARPTA.
This requires an experienced team to assemble a case. And because the Hawaii Department of Tax will not accept filings any less than 10 business days from closing, you need to prepare your case quickly by a team who knows what documentation will be necessary to get you a HARPTA waiver.
Making Your Case for a HARPTA Waiver
Building an airtight case for a HARPTA waiver is very different from a simple filing of an annual income tax return.
This kind of work requires both in-depth real estate tax knowledge and an understanding of how to provide the reviewers with the documents and explanations that will bring about a satisfactory result. The rejection rate of HARPTA filings is shockingly high.
The deadline for filing for a waiver or reduction of HARPTA is no later than 10 days prior to closing, so as soon as you accept an offer, you need to contact us immediately to get the process in motion.
Brad has helped hundreds of clients obtain HARPTA waivers, and he will put his experience to work for you.