Are you a home owner in Hawaii and considering holding onto your property when you leave Hawaii on Military PCS orders, Retirement Orders or something similar? What would you do with your house when you leave? If you plan on keeping the house and using it as an investment/rental property, you should be aware that you could very possibly be subjected to the HARPTA tax which the state of Hawaii taxes people who are non-owner occupants of property and who sell their property at a future date. For example: If the Military Servicemember in Hawaii had a home that they used for a rental property after they left Hawaii and then several years later they sold the property, they would almost certainly be subject to the HARPTA tax. The HARPTA tax is 5% of the amount realized. If the house sold for $650,000 then the tax would be $32,500.00. On a $350,000 house, the HARPTA tax would be $17,500.00. That is definitely something for you to keep in mind if you decide to use your piece of Hawaii real estate as a rental. Since I am not a tax professional or attorney, I suggest you check out the State of Hawaii Department of Taxation Website for further information and clarification.
For more information on Oahu Real Estate, Hawaii Homes For Sale, Sell and VA Loans in Hawaii, contact the number one, dedicated real estate company in Hawaii that focuses on taking care of their fellow Servicemembers from Hawaii. Hawaii Military Realty, Inc. Veteran owned and Veteran operated.
