Are you sitting on a mountain of equity in your Hawaii investment property but dreading the tax hit when you sell? In this video, we break down the ultimate real estate strategy for property owners looking to transition their wealth out of the islands without losing a massive chunk to taxes.
As a licensed real estate professional in Hawaii, I have seen too many investors lose their hard-earned equity because they weren’t prepared for the Hawaii Real Property Tax Act (HARPTA). If you are a non-resident or planning to move away, the state mandates a 7.25% withholding on the sales price of your property—not just the profit. On a $2 million property, that is $145,000 held back at closing.
But there is a legal and effective way to protect your cash. By utilizing a 1031 Exchange, you can defer capital gains taxes and seamlessly transfer your equity to a tax-friendly state like Texas. We cover the strict IRS timelines you must follow—45 days to identify a new property and 180 days to close—and how to properly file for a HARPTA exemption using Form N-288B or N-2889 before you sit down at the closing table.
Navigating tax treaties, 1031 exchanges, and international real estate investment trends requires strategic planning and precise execution. Whether you are a local resident adjusting your portfolio or an overseas investor managing U.S. assets, protecting your wealth requires expert guidance.
Ready to strategically reposition your real estate portfolio?
Reach out today to discuss your exit strategy and ensure your equity stays in your pocket.
Contact Info:
Jason Wong, MBA, Principal Broker
Island Dragonfly
License: RB-22819
Personal Website: https://jasonwong.us
Firm Website: https://islanddragonfly.com
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