INSTRUCTION
STATE OF HAWAII — DEPARTMENT OF TAXATION
FORM N-289
Instructions for Form N-289
(REV. 2012)
CERTIFICATION FOR EXEMPTION FROM THE
WITHHOLDING OF TAX ON THE DISPOSITION OF HAWAII
REAL PROPERTY
(NOTE: References to “married” and “spouse” also means “in a civil union” and “civil union partner”, respectively.)
GENERAL INSTRUCTIONS
operative under chapter 235, HRS, or the provisions of any
United States treaty, the transferor/seller is not required
Purpose of Form
to recognize any gain or loss with respect to the transfer.
Use Form N-289 to inform the transferee/buyer that the
Complete sections A and B requesting a brief description
withholding of tax is not required upon the disposition of
of the transfer and a brief summary of the law and facts
Hawaii real property if (1) the transferor/seller is a resident
supporting the claim that recognition of gain or loss is not
person, (2) by reason of a nonrecognition provision of the
required with respect to the transfer.
Internal Revenue Code as operative under chapter 235, HRS,
Box number 3. Check box number 3 if for the year preceding
or the provisions of any United States treaty, the transferor/
the date of the transfer the property has been used by the
seller is not required to recognize any gain or loss with
transferor/seller as a principal residence, and the amount
respect to the transfer, or (3) for the year preceding the date
realized for the property does not exceed $300,000. The
of the transfer the property has been used by the transferor/
“amount realized” means the sum of the cash paid, or to
seller as a principal residence, and that the amount realized
be paid (not including interest or original issue discount),
for the property does not exceed $300,000.
the fair market value of other property transferred or to be
Who Can Complete Form N-289
transferred, and the amount of any liability assumed by
the transferee/buyer or to which the Hawaii real property
The transferor/seller can complete Form N-289.
interest is subject to immediately before and after the
Where to Send Form N-289
transfer. Generally, the amount realized, for purposes of this
Form N-289 must be completed by the transferor/seller and
withholding, is the sales or contract price.
given to the transferee/buyer. The transferor/seller should
NOTE: Although the withholding of tax may not be required
NOT file Form N-289 with the Department of Taxation for
upon the disposition of Hawaii real property, the transferor/
approval. The transferee/buyer is to retain Form N-289 and
seller is required under section 235-92, HRS, to file an
NOT forward it to the Department of Taxation if ALL the
income tax return to report the sale or other disposition.
transferor/sellers have provided a certification of exemption
Signature
on Form N-289 to the transferee/buyer. If one or more, but
not all of the transferor/sellers has provided a certification
Form N-289 must be signed by an individual, a responsible
of exemption on Form N-289 to the transferee/buyer, the
corporate officer, a member or general partner of a
transferee/buyer shall attach a copy of the Form N-289 to
partnership, or a trustee, executor, or other fiduciary of a
Forms N-288 and N-288A, which must still be filed with the
trust or estate. In addition, Form N-289 may be signed by an
Department of Taxation.
authorized agent with a power of attorney.
Where to Get Information
SPECIFIC INSTRUCTIONS
Information is available on the Department’s website at
At the top of Form N-289, enter the transferor/seller’s name,
or you may contact the customer
identification number (last 4 numbers of the social security
service staff of our Taxpayer Services Branch at:
number, individual identification number or federal I.D.
number), and address. The Internal Revenue Service (IRS)
Voice:
808-587-4242
issues Individual Taxpayer Identification Numbers (ITINs)
1-800-222-3229 (Toll-Free)
to certain aliens who are required to have a U. S. taxpayer
Telephone for the Hearing Impaired:
identification number but who do not have, and are not eligible
808-587-1418
to obtain, a social security number. The ITIN issued by the
1-800-887-8974 (Toll-Free)
IRS must be used as the individual’s identification number. If
the individual has applied for an ITIN but the IRS has not yet
Fax:
808-587-1488
issued the ITIN, write “Applied For”.
E-mail:
Taxpayer.Services@hawaii.gov
Check the applicable box to indicate the reason the
withholding of tax is not required upon the disposition of
Mail:
Taxpayer Services Branch
Hawaii real property.
P.O. Box 259
Box number 1. Check box number 1 if the transferor/seller
Honolulu, HI 96809-0259
is a resident person as defined in section 235-68, HRS.
Box number 2. Check box number 2 if by reason of a
nonrecognition provision of the Internal Revenue Code as