Page 3 - Hawaii Island MidWeek - March 8, 2023

MARCH 8, 2023
HAWAI‘I ISLAND MIDWEEK 3
CHASING THE
LIGHT
with Don Thomas
Not So Fast!
“One new perception ... can change your life forever.” — Robert Holden
I have not driven like that again, have covered over 3 million miles, and have not had a single major accident. Thank you, officer.
Don Thomas is the fa- ther of three adult kids and maintains a very active life- style, with running, cycling and skiing at the forefront. With his wife, Kay, he sells resort real estate in the Rocky Mountains of Colo- rado.
Chasing The Light is pro- duced by Lynne Johnson and Robin Stephens Rohr.
I very soon made up the miles, then deliberately slowed, pulling off a nor- mal arrival at campus. I had made it. Then, flashing lights.
how fast you were going. Never got a real reading. But I know” — his voice caught for a moment before he con- tinued — “and you should know, I spent my entire Thanksgiving Day pulling out from a car a young man who had been speeding. I’ m going to give you a warning. But I hope you never speed like this again.”
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Coach would not un- derstand my being late for my first col-
He stepped to my car. Sickening waves of guilt swept through me. From exhilaration to regret, all on a dime. He was going to letmehaveit.IknewIde- served it. But I had it wrong.
lege game. I was nervous, excited, anxious. Worse, I was 18 and at the wheel of a new Pontiac GTO. With its 6.5-liter V-8 engine and four-barrel carb, it was ful- ly capable of making up the time lost from lingering over Thanksgiving dinner.
He approached my win- dow, looked at me intently, spoke softly.
In a flash, I saw the sit- uation from the officer’s side and knew what I must decide. His humble request has powered my driving ever since. Today, at age 72,
“I hope you hear what I have to say. I don’t know
Fill in the blank cells using numbers 1 to 9. Each number can appear only once in each row, column, and 3x3 block. Use logic and process of elimination to solve the puzzle. The difficulty level ranges from Bronze (easiest) to Silver to Gold (hardest). Answers are on page 7
RATING: BRONZE
For miles, limestone bluffs guarded one side of the road and stared across the muddy Mississippi. The empty, concrete ribbon beckoned irresistibly. With sweaty palms and butterflies raging inside, I checked the clock, scanned the road, glanced in the rearview mir- ror. It was now or never. I jammed the accelerator.
The Pontiac pow- er-surged, and the road liquified. At over 135 mph,
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In 2016, the Federal government increased the withholding to 15% of the gross proceeds any time a foreign seller conveys property. Escrow will also withhold an additional 7.5% because the foreigner is not a Hawaii resident. The 7.5% withholding applies to all out-of-state owners. Buyer and seller alike should be aware of nuances pertaining to the Foreign Investor Real
Property Tax Act (FIRPTA) and the Hawaii Investor Real Property Tax Act (HARPTA). As soon as an escrow is opened, escrow forwards an affidavit to the seller. A copy of the completed affidavit is provided to the buyer. It’s important that the buyer retain this paperwork. If not, the buyer could be held responsible for any tax a seller fails to pay! The buyer is not obligated to investigate statements on
the affidavit. They must simply produce a copy if questioned. Any gain will trigger withholding. Sellers able to show a loss may apply for a withholding waiver. This should be done well in advance. Values have gone up so a seller with no gain or one with a loss should be a red flag to the REALTORS®. They can advise accordingly. A State withholding exemption should be received by the State at least 10 days prior to closing. Foreign sellers should allow 6 weeks for approval of a withholding exemption from the Federal Government. When withholding is required, sellers with no other income can file for a refund right after closing. The State extends residency courtesy for one year from the date the resident relocates outside the State. The assumption is that sellers leaving Hawaii will need to file at least one more tax return as residents.
Sellers participating in a 1031 exchange are not subject to HARPTA/FIRPTA withholding because they are deferring their gain. Seller financed sales may be subject to either incremental withholding or lump sum withholding, depending on when title passes. It’s important to consider how the HARPTA/FIRPTA withholding will impact the required down payment on a seller- financed contract. Resident aliens are regarded as residents for the purposes of withholding. So, if a move is in your future, be sure your agent checks seller residency early on. Late filed exemptions can delay closing which could, in turn, affect the buyers loan. When it comes to real estate sales, surprises are rarely a good thing! Come back next week to discuss other real estate tax related issues! .
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A “MOVING” TAX AND YOUR BOTTOM LINE!
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