Hawaii 1031 Exchange – What Are the Requirements for a 1031 Exchange in HI?

Hi. Tiffany Davies from IPX1031, your 1031 exchange resource. Are you selling a property that has a capital gain or a nonresident and in the state of Hawaii?

If so, you may be subject to ARPTA. ARPTA stands for the Hawaii Real Estate Tax Act, and it’s a way for the state to ensure they get paid when you sell a property.

Nonresident sellers can expect that 7.25% of the gross sales price will be withheld and remitted to the state within twenty days. That means if you’re selling a property for a million dollars, you can expect that $72,500 of that will be withheld.

The good news is, is if you’re planning on doing a 1031 exchange, you can completely avoid the withholding. So that’s great news. However, keep in mind, a 1031 exchange can be a complicated transaction, and we definitely recommend reaching out to your tax advisor prior to getting started. If you have questions about this topic and wanna explore it further, please feel free to give me a call.

Let's Talk About Your Specific 1031 Needs

Customized solutions for your 1031 investment and business goals.

Pin It on Pinterest