Welcome to your comprehensive guide to navigating the tax landscape of buying and selling property in paradise. Whether you're a prospective Buyer seeking clarity on special taxes for foreign Buyers or a homeowner looking to understand capital gains tax implications when selling your property, you'll find valuable insights here. Dive into the nuances of General Excise Tax (GET) and Transient Accommodation Tax (TAT), explore the intricacies of the Hawaii Real Property Tax Act (HARPTA) and the Foreign Investment in Real Property Tax Act (FIRPTA), and gain a deeper understanding of how these regulations impact your real estate transactions. Our curated resources offer expert guidance and practical advice to help you navigate the tax complexities of Maui's dynamic real estate market with confidence. Whether you're a seasoned investor or a first-time Buyer, empower yourself with the knowledge you need to make informed decisions and unlock the full potential of Maui's captivating real estate opportunities.


What Are Capital Gains?

Capital gains refer to the profit you make when you sell a property for more than you paid for it. Similar to selling stocks, the gain is the difference between the purchase price and the sale price. However, real estate has unique considerations. For example, the original price includes the cost of certain improvements, so keeping receipts for renovations is essential.

How to Calculate Capital Gains on Real Estate

Capital gains in real estate are based on the adjusted cost basis of your property rather than the purchase price alone. Here's how to calculate it:

  1. Start with the Purchase Price
    This is the total amount the property sold for, not just the cash you brought to the closing table.

  2. Add the…

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Maui Property Tax Exemptions:

A Guide to the Owner-Occupant & Long-Term Rental Exemptions

If you're a property owner in Maui County, you're likely aware of the potential for property tax exemptions, but understanding which ones you qualify for can be a bit overwhelming. While there are several types of home exemptions available, the two main ones that are most common are the Owner-Occupant Home Exemption and the Long-Term Rental Exemption.

In this blog post, I'll break down the details of both exemptions, explaining how they work, who qualifies, and the steps you need to take to apply. Whether you're a homeowner looking to reduce your property taxes or a landlord renting out your property long-term, these exemptions can offer significant…

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Tax Considerations When Selling  

As you explore the possibility of selling your property, it's essential to be aware of the various tax considerations that may impact your transaction. Capital gains along with two important regulations to understand are HARPTA (Hawaii Real Property Tax Act) and FIRPTA (Foreign Investment in Real Property Tax Act). Below, I've outlined key information about these withholdings to help you navigate the selling process smoothly.

Capital Gains Tax

When selling your home, one financial consideration to keep in mind is the capital gains tax. This tax is imposed on the profit you make from the sale of your property. To calculate your capital gains, subtract the property's purchase price (adjusted basis) from the…

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So, You Want A Short Term Rental Property on Maui?

Considerations When Purchasing A Short-Term Vacation Rental Condo In Paradise

While ROI considerations are important, the decision to purchase often stems from a desire to create a personal haven in one of the most beautiful places on Earth. So, why get a short-term vacation rental condo on Maui? Because it's not just an investment; it's a ticket to a lifetime of joy and relaxation in a tropical paradise. 

Are you dreaming of owning a Vacation Property in paradise on the beautiful island of Maui? Investing in a short-term vacation rental condo can be a rewarding venture with the opportunity to create lasting memories with friends and family. While ROI considerations are important, the current…

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