Hawaii Form N-289 2023 - 2024

Hawaii Form N-289 is the “Certification for Exemption from the Withholding of Tax on the Disposition of Hawaii Real Property” form. This form is used primarily for transactions involving the sale or transfer of real property located in Hawaii. Hawaii Form N-289 requires the transferor/seller to provide their name, individual taxpayer identification number (either a social security number or an Individual Taxpayer Identification Number, ITIN) issued by the Internal Revenue Service, and address. The transferor/seller must also sign the form. Box 3 specifies that no withholding is necessary if the transferor/seller qualifies for a nonrecognition treatment under HARPTA, is selling their primary residence, or the amount realized is not more than $300,000. This exemption, however, doesn’t mean that the seller won’t be required to pay GET and TAT taxes at tax time. The N-289 also underscores that the seller will continue to be required to report any capital gains from the sale of their property on a nonresident state income tax return, Form N-15.

In some cases, the 7.25% withheld from a sale far exceeds a seller’s actual tax liability. The state provides a mechanism for refunding this withholding by filing Form N-288C after closing. However, this refund is only available if the nonresident seller has a valid N-15 nonresident Hawaii income tax return for the year of the sale on file at tax time. The form and payment must be filed by the 20th day following the date of transfer.

How to Fill Out Hawaii Form N-289?

Here is a step-by-step guide to filling out Hawaii Form N-289:

1. Part I: Transferee (Buyer) Information
2. Name: Enter the name of the transferee.
3. Address: Provide the transferee’s mailing address.
4. Social Security Number (SSN) or Federal Employer Identification Number (FEIN): Enter the appropriate tax identification number.
5. Part II: Transferor (Seller) Information
6. Name: Enter the name of the transferor.
7. Address: Provide the transferor’s mailing address.
8. SSN or FEIN: Enter the transferor’s tax identification number.
9. Residency Status: Indicate that the transferor is a nonresident of Hawaii.
10. Part III: Property Information
11. Address of Property: Enter the complete address of the property being transferred.
12. Date of Transfer: Provide the date the property transfer took place.
13. Amount Realized: Enter the total amount realized from the sale or transfer of the property.
14. Part IV: Withholding Calculation
15. Calculation of Withholding Amount: Multiply the amount realized by 7.25% to determine the withholding amount.
16. Withholding Amount: Enter the calculated withholding amount.
17. Part V: Certification
18. Signature of Transferee or Authorized Representative: The transferee or their authorized representative must sign the form.
19. Date: Enter the date the form is signed.
20. Part VI: Payment Information
21. Payment Method: Indicate the method of payment (e.g., check or money order).
22. Payment Amount: Enter the amount of payment being submitted with the form.