Quote Originally Posted by Burke View Post
That kind of depends on what amount has been depreciated all the years it has been rental property. Did the original and continuing depreciable basis include the entire purchase price? If so, an adjustment may need to be made on the tax return when the sale is reported if the land was part of the depreciation taken.
The sale is reported on the 1040 and any gain transfers to Hawaii through AGI. The gain is Hawaii income. The withholding on the Statement is Hawaii tax withheld.