Tuesday, June 12, 2007

Incentive to Convert Leasehold to Fee

SB600 generated lively debate in the House this session. The bill, which was signed into law on Friday, June 8th, allows a 100% capital gains tax exemption from 2008 - 2012 on the sale of leased fee interest to condominium lessees through associations of apartment owners or residential cooperative corporations. Essentially, this provides an incentive for lessors to sell the fee interest in their residential properties. The new law is considered a victory for condo dense districts such as Makiki, shown above.

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