Timeshare Sale in Hawaii and Reporting of taxes withheld

[GregSS]

I sold my timeshare in Hawaii and they withheld taxes pending my filing a N288C to obtain a refund.  I received the return of taxes since I am not a resident and had a loss on the sale.  I received a 1099 G from the state for the amount returned.  How do I handle this in TurboTax?  

[MinhT1]

The amount on the 1099-G is a refund of tax withheld and is not taxable. You do not need to enter that form 1099-G on your tax return. Just keep it in your tax records.

[GregSS]

Thant's a relief!  Thanks!

[lwelsby23]

I sold 2 timeshares in August, 2023, the Hawaii Department of Taxation sent a letter confirming that money was withheld.  I have copies of N-288C, 1099-S, Seller's Final Settlement Statement, N-

which of these documents do I send to Hawaii to get the refund of monies held since I an a NON- Resident of Hawaii?

Do I complete my normal Federal taxes and worry about this later, or do I haveto submit a copy of my taxes to Hawaii?

Do I have to file an N15, would this be filed with my taxes on Turbo tax

[DaveF1006]

Yes, you would file your Turbo Tax return and file a Hawaii non-resident return to report your withholdings and to receive a refund. There are no documents to send to Hawaii but keep those documents handy just in case if the State of Hawaii requests these at a later time. To enter the taxes you paid to Hawaii.

1. Log into Turbo Tax
2. Go to federal>deductions and credits
3. Estimates and other Taxes paid>estimates
4. Go to State estimated taxes for 2023.
5. Pick the timeframe for when the taxes were paid and select Hawaii in the dropdown.

Now, all this information will populate in your Hawaii non-resident return and you should see a full refund in your Hawaii return.

[TomD8]

@lwelsby23 wrote: "which of these documents do I send to Hawaii to get the refund of monies held since I an a NON- Resident of Hawaii?"

You are entitled to a full refund only if the sale of your timeshares resulted in a capital loss.  A capital gain on the sale of property located in Hawaii is taxable by Hawaii, even if you are a non-resident of Hawaii.  See Question #9 in this Hawaii tax document:

https://files.hawaii.gov/tax/legal/taxfacts/tf97-4.pdf

[RoyD]

Thanks for your help with this.  We're non-residents of Hawaii and sold our timeshare in 2023. We received the refund of taxes withheld and 1099-G's reporting the refunds.  As you have advised, we'll not be including that refund on our Federal Return or our home state return.  We think we must file an Hawaii N-15.  Is that true?  It seems like a lot of paperwork for nothing.  Thanks in advance for your help.

[MonikaK1]

Yes, Form N-15 is the Hawaii state tax return for nonresidents. Correct, you don't need to report the withholding you paid if you are getting a full refund.

Note that the reply to the previous poster pointed out that if there is a gain from the sale of your timeshare, then you would need to report it as the sale of an investment.

If you sold the vacation timeshare at a loss, and you had personal use of the property, the loss would not be deductible.

[RoyD]

Thanks again.  Our timeshare sale was a loss so no gain for us but we'll submit a N-15 as required.