Posted by dealmaker on July 10, 2006 at 14:42:23:
I’d be suprised if they didn’t, CA (and probably any other state with an income tax) does the same. If the tax on the gain is less than the 5% you’ll get it back when you file your HI tax return.
When I sold my CA ppty 5 3 years ago the state wanted the escrow company to withhold, but I just provided proof of the 1031 exchange and they told the escrow company not to withhold.
I’m guessing the HI ppty has been a rental, have you considered doing an exchange?
dealmaker