HAR § 18-235-113 — Time for assessment of deficiency attributable to gain upon sale of residence

(a) (Reserved) (b) Notification required by taxpayer. Notice to the department as required by section 235-113(b), HRS, shall be made in the taxpayer’s tax return for the taxable year in which the gain from the sale of the principal residence is realized. (c) Limitation period. Pursuant to section 235-113, HRS, the department may assess any deficiency attributable to any gain from the sale of property used as the taxpayer’s principal residence as set forth in section 235-113(a), HRS. The deficiency shall be assessed within three years from the date the department is notified that the taxpayer has purchased replacement property, intends not to replace the property, or the period for replacement expires.