Hawaii Application for Withholding Certificate for Dispositions by Nonresident Persons on Property Interest

Application for Withholding Certificate for Dispositions by Nonresident Persons on Property Interest
Form N-288B, Rev. 2019, Application for Withholding Certificate for Dispositions by Nonresident Persons of Hawaii Real Property Interest
Clear Form

STATE OF HAWAII __ DEPARTMENT OF TAXATION

FORM
N-288B
(REV. 2019)

Copy A - For State of Hawaii, Department of Taxation

Application for Withholding Certificate
for Dispositions by Nonresident
Persons of Hawaii Real Property
Interest
•	File Copies A and B of this form with the Department of Taxation.
•	DO NOT file Form N-288B if the transfer of property has already
taken place. The Department of Taxation will not approve Form
N-288B after the date of transfer reported on line 4a has passed.
•	Please be sure to complete ALL lines and attach ALL supporting
documentation OR your application will be rejected.
•	See Instructions on the back of Copy B.

1	 Name of applicant (Transferor/seller)	

Identification number (SSN or FEIN)
Daytime phone no. of applicant
(
)

Mailing address where you want withholding certificate sent	
		
City, State, and ZIP code (province, postal code, and country)
2	 Names of all transferors/sellers (Attach additional sheets if more than one transferor/seller.)	

Identification number (SSN or FEIN)

Address (number and street)
City, State, and ZIP code (province, postal code, and country)
3	 Names of all transferees/buyers (Attach additional sheets if more than one transferee/buyer.)	  I.D. no. (Last 4 numbers of the SSN or FEIN)
Address (number and street)
City, State, and ZIP code (province, postal code, and country)
4	 Description of Hawaii real property transaction:
a Date of transfer (month, day, year).  	
  DO NOT file Form N-288B if the transfer of property has already taken place.
	 The Department of Taxation will not approve Form N-288B after the date of transfer has passed.
b Location and general description of property (Include tax map key number)_________________________________________________________
	 _____________________________________________________________________________________________________________________
5	 Check the box to indicate the reason a withholding certificate should be issued.
	
NOTE: The transferor/seller is required under section 235-92, HRS, to file an income tax return whether or not the person derives a taxable gain.

……a		The transferor/seller will not realize any gain with respect to the transfer. (Complete 5a on the back of Copy A.)
……b	There will be insufficient proceeds to pay the withholding required under section 235-68(b), Hawaii Revised Statutes, after payment of

		 all costs, including selling expenses and the amount of any mortgage or lien secured by the property. (Complete 5b on the back of Copy A.)
6	 Was the property used at anytime as a rental?..................................   Yes  	No  	
Hawaii Tax I.D. Number
	 If yes, enter your Hawaii Tax I.D. Number.	
		
GE       -       -         -  

Please
Sign
Here

 

I hereby declare under penalties provided by section 231-36, HRS, that I have examined this application and accompanying attachments, and, to the best of my knowledge and
belief, they are true, correct, and complete.

hh____________________________________________ 	

________________________________ 	 __________________________

hh____________________________________________ 	

________________________________ 	 __________________________

		
		

Signature	

Title (If applicable)			

Spouse’s signature (If applicable)	

Title (If applicable)			

Date
Date

FOR OFFICIAL USE ONLY:
Approved:	

	

	

  Disapproved: 	
Month	

Amount required to be withheld	

Day	

Year	

Month	

Day	Year

$				

Signature  					
		
N288B_I 2019A 01 VID01
ID NO 01

FORM N-288B

FORM N-288B
(REV. 2019)
5a.	 Calculation and written justification showing that the transferor/seller will not realize any gain with respect to the transfer.
Attach a copy of a tentative statement from your escrow company for this transaction showing the gross sales price.
Also attach a copy of your closing escrow statement from your purchase or acquisition of this property. (Note: You must
provide documentation for all items in the calculation. Do NOT include any carryforward, net operating or suspended
passive activity losses on line 2b.)
1.	 Sales Price	

$___________________________

2a.	 Purchase price of property	

____________________________

2b.	 Add:	 Improvements (attach schedule)	

____________________________

		

Selling expenses	

____________________________

		

Other (attach list and schedule)	

____________________________

2c.	 Less:	 Depreciation (attach schedule)	

____________________________

		

____________________________

Other (attach list and schedule)	

3.	 Adjusted basis of property. (Line 2a plus line 2b, minus line 2c)	
4.	
	
	
	
	

Line 1 minus line 3. If greater than zero, you DO NOT qualify for
a waiver of the withholding. Do not file this form with the State of Hawaii,
Department of Taxation. Exception: If this property was used as your main
home and you may qualify to exclude the entire gain, use Form N-103 as a
worksheet and attach Form N-103 to this Form N-288B. 	

$___________________________

$___________________________

5b.	 Calculation and written justification showing that there will be insufficient proceeds to pay the withholding required under
section 235-68(b), Hawaii Revised Statutes, after payment of all costs, including selling expenses and the amount of
any mortgage or lien secured by the property. Attach a copy of a tentative statement from your escrow company for this
transaction showing the distribution of funds received.
1a.	 Sales price	

$___________________________

1b.	 Sales proceeds to be received in forms
	
other than cash (describe) ___________________________________ 	

____________________________

1c.	 Sales proceeds to be received in cash (Line 1a minus line 1b)	

____________________________

2a.	 Selling expenses. Attach a schedule
or list below to indicate the breakdown of
	
	
your calculations.	$	
_________________________
2b.	 Mortgage(s) secured by the property sold to
	
be paid off with cash proceeds		 _________________________
2c.	 Other (list):

3.	 Add lines 2a through 2c	

$___________________________

4.	 Amount to be withheld. Line 1c minus line 3 (If less than zero, enter zero)	

$___________________________

STATE OF HAWAII __ DEPARTMENT OF TAXATION

FORM
N-288B
(REV. 2019)

Copy B - To be returned to Transferor/seller

Application for Withholding Certificate
for Dispositions by Nonresident
Persons of Hawaii Real Property
Interest
•	File Copies A and B of this form with the Department of Taxation.
•	DO NOT file Form N-288B if the transfer of property has already
taken place. The Department of Taxation will not approve Form
N-288B after the date of transfer reported on line 4a has passed.
•	Please be sure to complete ALL lines and attach ALL supporting
documentation OR your application will be rejected.
•	See Instructions on the back of Copy B.

1	 Name of applicant (Transferor/seller)	
Daytime phone no. of applicant
(
)

Mailing address where you want withholding certificate sent	
		
City, State, and ZIP code (province, postal code, and country)
2	 Names of all transferors/sellers (Attach additional sheets if more than one transferor/seller.)	
Address (number and street)
City, State, and ZIP code (province, postal code, and country)

3	 Names of all transferees/buyers (Attach additional sheets if more than one transferee/buyer.)	  I.D. no. (Last 4 numbers of the SSN or FEIN)
Address (number and street)
City, State, and ZIP code (province, postal code, and country)
4	 Description of Hawaii real property transaction:
a Date of transfer (month, day, year).  	
  DO NOT file Form N-288B if the transfer of property has already taken place.
	 The Department of Taxation will not approve Form N-288B after the date of transfer has passed.
b Location and general description of property (Include tax map key number)_________________________________________________________
	 _____________________________________________________________________________________________________________________
5	 Check the box to indicate the reason a withholding certificate should be issued.
	
NOTE: The transferor/seller is required under section 235-92, HRS, to file an income tax return whether or not the person derives a taxable gain.

……a		The transferor/seller will not realize any gain with respect to the transfer. (Complete 5a on the back of Copy A.)
……b	There will be insufficient proceeds to pay the withholding required under section 235-68(b), Hawaii Revised Statutes, after payment of

		 all costs, including selling expenses and the amount of any mortgage or lien secured by the property. (Complete 5b on the back of Copy A.)
6	 Was the property used at anytime as a rental?..................................   Yes  	No  	
Hawaii Tax I.D. Number
	 If yes, enter your Hawaii Tax I.D. Number.	
		
GE       -       -         -  

Please
Sign
Here

 

I hereby declare under penalties provided by section 231-36, HRS, that I have examined this application and accompanying attachments, and, to the best of my knowledge and
belief, they are true, correct, and complete.

hh____________________________________________ 	

________________________________ 	 __________________________

hh____________________________________________ 	

________________________________ 	 __________________________

		
		

Signature	

Title (If applicable)			

Spouse’s signature (If applicable)	

Title (If applicable)			

Date
Date

FOR OFFICIAL USE ONLY:
Approved:	

	

	

  Disapproved: 	
Month	

Amount required to be withheld	

Day	

Year	

Month	

Day	Year

$				

Signature  					
		

FORM N-288B

INSTRUCTION

STATE OF HAWAII — DEPARTMENT OF TAXATION

Instructions for Form N-288B

FORM N-288B

Application for Withholding Certificate for Dispositions by
Nonresident Persons of Hawaii Real Property Interest

(REV. 2019)

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-288B to apply for a withholding certificate to waive or adjust withholding on dispositions by nonresident persons of Hawaii real property interest. Use this form only for applications
based on (1) a claim that the transferor/seller will
not realize any gain with respect to the transfer, or
(2) a claim that there will be insufficient proceeds
to pay the withholding required under section
235-68(b), Hawaii Revised Statutes (HRS), after
payment of all costs, including selling expenses
and the amount of any mortgage or lien secured
by the property. If a nonresident transferor/seller
transfers two or more Hawaii real property interests, one Form N-288B should be filed for each
property transferred.

Who Can Apply for a Withholding
Certificate
The transferor/seller can file Form N-288B. If
two or more nonresident transferors/sellers jointly
transfer a Hawaii real property interest, a separate
Form N-288B should be filed for each nonresident
transferor/seller applying for a withholding certificate. One Form N-288B should be filed for a taxpayer and spouse if they will be filing a joint return
for the year in which they transferred their Hawaii
real property interest.

Withholding Certificate
Upon receipt of Form N-288B, the State of Hawaii, Department of Taxation (Department) shall
determine whether the transferor/seller has realized or will realize any gain with respect to the
transfer, or whether there will be insufficient proceeds to pay the withholding. After the form has
been approved or disapproved, a copy of the form
will be returned to the transferor/seller, who shall
thereafter transmit the form to the transferee/buyer.
If the Department is satisfied that no gain will be
realized, the Department will waive the withholding requirement and the transferee/buyer is not
required to withhold any tax. The transferee/buyer
shall attach a copy of the Form N-288B to Forms
N-288 and N-288A, which must still be filed with
the Department.
If the Department is satisfied that there will be
insufficient proceeds to pay the withholding, the
Department will adjust the amount required to be
withheld and the transferee/buyer shall withhold
the adjusted amount and submit the payment,
Form N-288, Form N-288A, and Form N-288B to
the Department.

When to File Form N-288B
Form N-288B must be filed with the Department
no later than 10 working days prior to the date of

transfer. Forms N-288B filed later than 10 working days prior to the date of transfer will not be
accepted and will be returned to the transferor/
seller. The Department will not approve Forms
N-288B after the date of transfer reported on
line 4a has passed. Timely mailing of Form N288B by U.S. mail or any delivery service designated for purposes of section 7502 of the federal
Internal Revenue Code will be treated as timely
filed. See Tax Information Release No. 97-3 for
more information.

Where to Send Form N-288B
Copies A and B of Form N-288B must be
mailed or hand delivered to the taxation district
office listed below which is located in the county
where the closing of the sale is taking place, or the
county in which the property is located. After the
form has been approved or disapproved, copy B
of Form N-288B will be returned to the transferor/
seller at the address specified on line 1. If copy B
of Form N-288B is not submitted, a copy of the
form will not be returned to the transferor/seller.
We do not fax confidential information concerning Form N-288B, nor do we accept Form N-288B
through fax.

Specific Instructions
Line 2. Enter “Same as line 1” unless you are
entering another address. If you entered a mailing
address on line 1 that is not your actual address,
enter your actual address on line 2. If there are
multiple transferor/sellers, attach additional sheets
giving the required information about each one,
indicating ownership percentage and residency
status.
Line 3. Enter the name, address, and identification number (last 4 numbers of the SSN or
FEIN), if any, of the transferee/buyer. 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
last 4 numbers of 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.” If
there are multiple transferee/buyers, attach additional sheets giving the required information about
each one.
Line 4. Enter the appropriate information. In 4b,
enter the address and description of the property.
Include the tax map key number.
Line 5. If 5a is checked, 5a on the back of Copy
A must be completed. If 5b is checked, 5b on the
back of Copy A must be completed.

return whether or not the person derives a
taxable gain.
Line 6. If the property was used as a rental
property at anytime by the transferor/seller(s),
check the box marked “yes” and fill in the appropriate Hawaii Tax I.D. Number. If not, check the box
marked “no.”

Back of Copy A
Line 5a(1). Enter the gross sales price from the
sale. Attach a copy of a tentative statement from
your escrow company for this transaction showing
the gross sales price, the transferor(s)/seller(s),
and the transferee(s)/buyer(s).
Line 5a(2a). Purchase price of property (attach
tentative statement).
Line 5a(2b). Improvements: Attach schedule of
improvements with contracts, invoices, receipts
and any supporting documents. Selling expenses:
List selling expenses such as commissions, state
transfer taxes, etc. Other: Attach list and schedule
any evidence supporting your claim.
Line 5a(4). Line 1 minus line 3. If greater than
zero, you DO NOT qualify for a waiver of withholding. Do not submit Form N-288B. Exception: If the
sale of the property was your main home and you
qualify to exclude the entire gain, use Form N-103
as a worksheet and attach Form N-103 to Form
N-288B.
Line 5b(1a). Enter the gross sales price from the
sale. Attach a copy of a tentative statement from
your escrow company for this transaction showing
the distribution of funds received, the transferor(s)/
seller(s), and the transferee(s)/buyer(s).
Line 5b(1b). Enter the amount of sales proceeds to be received in forms other than cash,
such as an agreement of sale or purchase money
mortgage.
Line 5b(2a). Enter any expense of sale, such as
commissions and state transfer taxes.
Line 5b(2c). Enter any other cost associated
with the sale of the property, such as liens secured
by the property.

Signature
Form N-288B 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. If Form N288B is being filed by a taxpayer and spouse, both
must sign the form. In addition, Form N-288B may
be signed by an authorized agent with a power of
attorney.

NOTE: The transferor/seller is required under
section 235-92, HRS, to file an income tax

MAILING ADDRESSES
OAHU DISTRICT OFFICE
OFFICE AUDIT BRANCH - N-288B
P. O. BOX 259
HONOLULU, HAWAII 96809-0259
(830 PUNCHBOWL STREET, #228)
808-587-1644

MAUI DISTRICT OFFICE
RE: N-288B
54 S. HIGH STREET, #208
WAILUKU, HAWAII 96793-2198
808-984-8500

HAWAII DISTRICT OFFICE
RE: N-288B
75 AUPUNI STREET, #101
HILO, HAWAII 96720-4245
808-974-6321

KAUAI DISTRICT OFFICE
RE: N-288B
3060 EIWA STREET, #105
LIHUE, HAWAII 96766-1889
808-274-3456