Aloha! Inheriting a piece of paradise should be a dream come true, but if you are a foreign heir living outside the United States, inheriting a Hawaii property comes with a unique set of complex tax and legal hurdles.
In this video, we break down exactly what you need to know before you decide to sell that inherited luxury estate or beachfront condo. We will walk through the critical steps of the process, ensuring you don’t get blindsided by the IRS or the State of Hawaii.
Key Takeaways in This Video:
The Reality of Probate: Discover why the court-supervised probate process in Hawaii can take 9 to 18 months if the property wasn’t placed in a Trust.
The Step-Up in Basis Advantage: Learn how the US tax code works in your favor by resetting the property’s value to its current fair market value, potentially saving you millions in Capital Gains taxes.
Navigating HARPTA & FIRPTA: Uncover the details behind the mandatory withholdings for foreign sellers. The state and federal governments will hold back a combined 22.25% of the total gross sales price at closing until your taxes are filed and settled.
The US Estate Tax Trap: Understand the crucial difference in estate tax exemptions: while US citizens have millions in exemptions, foreign estates are only exempt up to $60,000 before facing tax rates as high as 40%.
Selling inherited property in Hawaii as a non-resident is not a DIY project. It requires navigating international tax treaties, state withholdings, and strict federal compliance. With over 22 years of experience, I am here to help you maximize your final sale price and walk away with the best possible inheritance.
Personal Website: https://jasonwong.us
Company Website: https://islanddragonfly.com
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