Taxation to be aware of:
As you are aware, being a property owner you have to pay your annual property taxes. When gearing up for a sale you need to be aware of the fact that you still need to stay current on paying your property taxes. However, when you get involved in a transaction and you get close to the closing table the taxes for the year will be prorated and whatever portion you have paid passed the time of your ownership will then be paid by the buyer through the course of the escrow process and you will see the proration as a credit on your final statement.
Selling in Hawaii as a non-resident or foreign investor you need to be aware of two key tax withholdings that you could be faced with.
HARPTA: A State Law: ( Hawaii Real Property Tax Act)
FIRPTA: A FEDERAL LAW: (Foreign Investors Real Property Tax Act )
