Tax Compliance & Catch-up
No HARPTA Exemptions Until Your Other Taxes Are In Order
Hawaii tax rules are confusing, and sometimes landlords get caught in a pinch. When applying for a HARPTA waiver or refund, the State of Hawaii Department of Taxation first researches whether or not certain state taxes apply.
If state taxes apply, they then research whether or not you, the home seller, are current on all of your tax obligations, which may include:
General Excise Tax filings (4% - 4.5% of gross rental proceeds)
Transient Accommodations Tax (10.25% of gross rental proceeds)
Hawaii state income tax filings
Home sellers who hope to get a HARPTA waiver or early refund need to first make sure that they are current with all of their existing tax obligations.
From experience with some of our past clients, this is when some home sellers want to throw up their hands and walk away. We say - Don't give up!
Why Satisfying Past Due Taxes Ultimately Benefits You
In nearly every situation we have seen over the last decade, the HARPTA funds to be taken back from the Department of Tax far exceed the cost to pay the past due taxes.
So while it may seem like a big hassle, from a purely financial standpoint (as well as a legal standpoint), it makes perfect sense to take care of all past due taxes first - in order to get a much bigger payout at the end.
Contact us now and start getting caught up with your tax obligations so you can get your HARPTA back. We'll make it as simple as possible.