Hawaii Certification for Exemption from the Withholding of Tax on Disposition of Property

Certification for Exemption from the Withholding of Tax on Disposition of Property
Form N-289, Rev. 2019, Certification for Exemption from the Withholding of Tax on the Disposition of Hawaii Real Property
Clear Form

FORM N-289
(REV. 2019)

STATE OF HAWAII — DEPARTMENT OF TAXATION

CERTIFICATION FOR EXEMPTION FROM THE
WITHHOLDING OF TAX ON THE DISPOSITION OF HAWAII
REAL PROPERTY
(To be completed by transferor/seller and given to transferee/buyer. The transferor/seller
should NOT file Form N-289 with the Department of Taxation for approval.)

Section 235-68, Hawaii Revised Statutes (HRS), provides that a transferee/buyer of Hawaii real property must withhold tax if the transferor/seller is a
nonresident person. To inform the transferee/buyer that withholding of tax is not required upon the disposition of Hawaii real property by _____________
_______________________________________ (name of transferor/seller), the undersigned hereby certifies the following:
Transferor/seller’s identification number (Last 4 numbers of the SSN or FEIN)________________________________	
Transferor/seller’s address (home address for individuals, office address for corporations, partnerships, trusts, or estates)

The withholding of tax is not required upon the disposition of Hawaii real property because (check whichever box is applicable):

	 1	

	 2	

The transferor/seller is a resident person as defined in section 235-68, HRS. Resident person means any: (1) Individual included in the
definition of “resident” in section 235-1, HRS; (2) Corporation incorporated or granted a certificate of authority under Chapter 414, 414D, or
415A, HRS; (3) Partnership formed or registered under Chapter 425 or 425E*, HRS; (4) Foreign partnership qualified to transact business
pursuant to Chapter 425 or 425E*, HRS; (5) Limited liability company formed under Chapter 428, HRS, or any foreign limited liability company
registered under Chapter 428, HRS; provided that if a single member limited liability company has not elected to be taxed as a corporation, the
single member limited liability company shall be disregarded for purposes of section 235-68, HRS, and section 235-68, HRS, shall be applied
as if the sole member is the transferor; (6) Limited liability partnership formed under Chapter 425, HRS; (7) Foreign limited liability partnership
qualified to transact business under Chapter 425, HRS; (8) Trust included in the definition of “resident trust” in section 235-1, HRS; or (9) Estate
included in the definition of “resident estate” in section 235-1, HRS.
*Note: Chapter 425E, HRS, replaced chapter 425D, HRS, effective July 1, 2004.
That by reason of a nonrecognition provision of the Internal Revenue Code as operative under chapter 235, HRS, or the provisions of any
United States treaty, the transferor/seller is not required to recognize any gain or loss with respect to the transfer. (See Instructions)
(Complete A and B below.)

A. Brief description of the transfer:

B. Brief summary of the law and facts supporting the claim that recognition of gain or loss is not required with respect to the transfer:

	 3	

For the year preceding the date of the transfer the property has been used by the transferor/seller as a principal residence, and that the amount
realized for the property does not exceed $300,000. (See Instructions)

____________________________________________________ (name of transferor/seller) understands that this certification may be disclosed to the
State of Hawaii, Department of Taxation by the transferee/buyer and that any false statement contained herein could be punished by fine, imprisonment,
or both.
I declare, under the penalties set forth in section 231-36, HRS, that this certification has been examined by me, and to the best of my knowledge and
belief, it is true, correct, and complete. In the case of corporations, partnerships, trusts, or estates, I further declare that I have authority to sign this
document on behalf of ____________________________________________________ (name of transferor/seller).
Signed:	 ________________________________________________ 	
Title:	

Print Name:	 _________________________________________________

________________________________________________ 	Date:	 _________________________________________________

		

FORM N-289

INSTRUCTION

STATE OF HAWAII — DEPARTMENT OF TAXATION

FORM N-289

Instructions for Form N-289

(REV. 2019)

CERTIFICATION FOR EXEMPTION FROM THE
WITHHOLDING OF TAX ON THE DISPOSITION OF HAWAII
REAL PROPERTY
(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)

GENERAL INSTRUCTIONS
Purpose of Form
Use Form N-289 to inform the transferee/buyer that the
withholding of tax is not required upon the disposition of
Hawaii real property if (1) the transferor/seller is a resident
person, (2) by reason of a nonrecognition provision of the
Internal Revenue Code as operative under chapter 235, HRS,
or the provisions of any United States treaty, the transferor/
seller is not required to recognize any gain or loss with
respect to the transfer, or (3) for the year preceding the date
of the transfer the property has been used by the transferor/
seller as a principal residence, and that the amount realized
for the property does not exceed $300,000.
Who Can Complete Form N-289
The transferor/seller can complete Form N-289.
Where to Send Form N-289
Form N-289 must be completed by the transferor/seller and
given to the transferee/buyer. The transferor/seller should
NOT file Form N-289 with the Department of Taxation for
approval. The transferee/buyer is to retain Form N-289 and
NOT forward it to the Department of Taxation if ALL the
transferor/sellers have provided a certification of exemption
on Form N-289 to the transferee/buyer. If one or more, but
not all of the transferor/sellers has provided a certification
of exemption on Form N-289 to the transferee/buyer, the
transferee/buyer shall attach a copy of the Form N-289 to
Forms N-288 and N-288A, which must still be filed with the
Department of Taxation.

SPECIFIC INSTRUCTIONS
At the top of Form N-289, enter the transferor/seller’s name,
identification number (last 4 numbers of the social security
number, individual identification number or federal I.D.
number), and address. The Internal Revenue Service (IRS)
issues Individual Taxpayer Identification Numbers (ITINs)
to certain aliens who are required to have a U. S. taxpayer
identification number but who do not have, and are not eligible
to obtain, a social security number. The ITIN issued by the
IRS must be used as the individual’s identification number. If
the individual has applied for an ITIN but the IRS has not yet
issued the ITIN, write “Applied For.”
Check the applicable box to indicate the reason the
withholding of tax is not required upon the disposition of
Hawaii real property.
Box number 1. Check box number 1 if the transferor/seller
is a resident person as defined in section 235-68, HRS.

Box number 2. Check box number 2 if by reason of a
nonrecognition provision of the Internal Revenue Code as
operative under chapter 235, HRS, or the provisions of any
United States treaty, the transferor/seller is not required
to recognize any gain or loss with respect to the transfer.
Complete sections A and B requesting a brief description
of the transfer and a brief summary of the law and facts
supporting the claim that recognition of gain or loss is not
required with respect to the transfer.
Box number 3. Check box number 3 if for the year preceding
the date of the transfer the property has been used by the
transferor/seller as a principal residence, and the amount
realized for the property does not exceed $300,000. The
“amount realized” means the sum of the cash paid, or to
be paid (not including interest or original issue discount),
the fair market value of other property transferred or to be
transferred, and the amount of any liability assumed by
the transferee/buyer or to which the Hawaii real property
interest is subject to immediately before and after the
transfer. Generally, the amount realized, for purposes of this
withholding, is the sales or contract price.
NOTE: Although the withholding of tax may not be required
upon the disposition of Hawaii real property, the transferor/
seller is required under section 235-92, HRS, to file an
income tax return to report the sale or other disposition.
Signature
Form N-289 must be signed by an individual, a responsible
corporate officer, a member or general partner of a
partnership, or a trustee, executor, or other fiduciary of a
trust or estate. In addition, Form N-289 may be signed by an
authorized agent with a power of attorney.
Where to Get Information
Information is available on the Department’s website at
tax.hawaii.gov or you may contact a customer service
representative at:
Voice:	808-587-4242
	
1-800-222-3229 (Toll-Free)
Telephone for the Hearing Impaired:
	808-587-1418
	
1-800-887-8974 (Toll-Free)
Fax: 	

808-587-1488

Mail:	
	
	

Taxpayer Services Branch
P.O. Box 259
Honolulu, HI 96809-0259