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What are Forms P-64A and P64-B in Hawaii?
The Conveyance Tax is a type of tax levied on the transfer of real property (or real estate) which is usually charged to the seller. A certain percentage is levied on the amount paid for the sale/transfer of the real estate to calculate the Conveyance Tax.
In Hawaii, one must complete Form P-64A issued by the Hawaii Department of Taxation to report the amount paid for the sale/transfer of the real estate to pay the Conveyance Tax.
However, the Form P-64B permits one to obtain an exemption from the Conveyance Tax, provided that his/her transaction meets an exemption provided on Form P-64B.
It is important to note that even though Forms P-64A and P-64B are administered by the Hawaii Department of Taxation, they must be filed at the Bureau of Conveyances, which is a recording office for real estate deeds, etc. in Hawaii.
Notable Exemptions under Form P64-B
Some of the notable exemptions provided under Form P64-B include the following:
- Transfers between a husband and wife, reciprocal beneficiaries, or a parent and child in which nominal consideration (meaning little or no money) is paid;
- Transfers in which a nominal consideration of $100 or less is paid or will be paid; and
- Transfers from a grantor to a grantor's revocable living trust.
When one chooses certain exemptions on Form P64-B such as the ones provided in 1) and 3) above, the person can submit the P64-B directly with the Bureau of Conveyances without obtaining prior approval from the Hawaii Department of Taxation. However, when one chooses other exemptions on Form P64-B such as the one provided in 2) above, he/she will be required to explain the real estate transfer in detail on Form P64-B and submit it for approval first to the Hawaii Department of Taxation before he/she can file it with the Bureau of Conveyances.
As Hawaii has unique rules and forms unlike those mandated in Mainland U.S.A., it is good to be aware of them.Article Source/Courtesy of: Yuka Hongo, Esq. (Hongo Law Office, LLLC)
This information is not intended to be a substitute for specific individualized tax, legal or estate planning advice as individual situations will vary. HawaiiEstateAndTrust.com nor its registered representatives or employees, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.
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What are Forms P64-A and P64-B in Hawaii? Important Property Tax Forms