There are 1 blog entries for June 2011.
Thursday, June 2nd, 2011 at 10:10am. 880 Views, 0 Comments.
What Canadian Buyers Should Know About Buying in Hawaii
Being a Canadian and buying in Hawaii is not a problem. From the purchasing standpoint, if you choose to do your escrow signing in Canada (instead of being in Hawaii), your documents will be notarized at the local consulate, which requires an appointment set in advance.
When you sell, there will be two withholding "taxes" applicable. One is called FIRPTA, a U.S. Federal withholding amounting to 10% of the sale price. The second is HARPTA, a Hawaii withholding of 5% of the sale price. To recap, when you sell, 15% of the sale price will be withheld.
The purpose of the two tax withholdings is to ensure a foreign person files U.S. Federal and Hawaii tax returns and pays capital gains on…