Rental Sold in Hawaii

[AZ-Tax]

Ok, client says they got a letter that they need a EIN if the property was a rental. Something about a "Harpta" and 5% tax. Early last year Taxea told me about a GET which is separate from the HI tax return. I informed my clients of this and I dont know if they followed up. Would GET program issued them a EIN? How can my client owe any money on rental income when they had negative rental income for the last 3 yrs? They tell me they cannot close w/o this EIN. I should could use some help on this one.

[Lion]

Tax ID

If all that's needed is a tax ID for the owner who's selling, give them the appropriate tax ID. If an EIN is actually required after the fact, then you can get one immediately on line. But, find out if they want an EIN if an entity or the SSN if an individual or what. And the tax might have to do with transferring ownership of real property as opposed to an income tax. Not familiar with the acronyms you're using.

[AZ-Tax]

Hawaii Tax ID # as stated on tax software info wksht

This looks like a first for: HI N-15 info worksheet in my tax software is now asking for the Hawaii Tax I.D. Number Example: W12345678-12 Boy, that is no Fed ID number. Then it says check box if none. When I check the box the words "none assigned" appear on the line.

[BOB W]

Some states require a registration for rental property and a sales tax is assessed on the rents collected. Don't know if that is your case.

[Maribeth]

This looks like a first for: HI N-15 info worksheet in my tax software is now asking for the Hawaii Tax I.D. Number Example: W12345678-12 Boy, that is no Fed ID number. Then it says check box if none. When I check the box the words "none assigned" appear on the line.

We prepare quarterly GET returns for our client how has a Hawaii condo. There is a separate Hawaii number -- how she got it, I am not sure. We set her up for Hawaii filing so we had to have done it. BTW, I believe GET stands for General Excise Tax.

She is in the process of selling the condo so I hope you get your answer regarding reporting the sale.

Maribeth

[taxea]

This looks like a first for: HI N-15 info worksheet in my tax software is now asking for the Hawaii Tax I.D. Number Example: W12345678-12 Boy, that is no Fed ID number. Then it says check box if none. When I check the box the words "none assigned" appear on the line.

That is a GET number and the GET tax is based on gross rental income not on net income/loss.

If they received 10K of income from the rental then they pay 4.5% tax on the 10K.