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FORM

INSTRUCTIONS FOR PPLIC TION FOR TENT TIVE REFUND OF WITHHOLDING

2012

MW506R

ON S LES OF RE L PROPERTY BY NONRESIDENTS

The Comptroller’s decision to deny or grant in part a tentative refund is final and not subject to appeal.

GENER L INSTRUCTIONS

SPECIFIC INSTRUCTIONS

Line 4. Subtract the amount on line 3 from

the amount on line 2. However, if you are

THIS FORM IS OPTION L ND IS

t the top of Form MW506R, enter the

reporting a gain under the installment

NOT REQUIRED TO BE FILED.

tax year of the transferor/seller if other than a

method for federal income tax purposes,

calendar year.

attach a separate sheet that lists the pay-

IMPORT NT: If Form MW506R is filed, the

ments received during the tax year and the

transferor/seller must still file a Maryland

Enter the name, address and identifica-

gross profit percentage. Multiply the amount

income tax return (Form 500, 504 or 505)

tion number (social security number or feder-

of the payments by the gross profit percent-

after the end of the tax year, report the entire

al employer identification number) of the

age and enter the result on line 4.

income for the year (from all sources, includ-

transferor/seller applying for a refund of the

Line 4a. If there were multiple owners, enter

ing the transfer), and pay any additional tax

amount withheld. The name and identification

your percentage of ownership of the property.

due on the income or request an additional

number entered must be the same as the

If you were the only owner, enter 100%.

refund.

name and identification number entered for

the transferor/seller on the Form MW506NRS.

Line 4b. Multiply line 4 by line 4a to deter-

Purpose of Form

If the identification number on the

mine your share of the capital gain.

MW506NRS is incorrect, enter the correct

The income tax withheld at closing and

identification number and attach an explana-

Line 5a. If you are a C corporation, or an

paid to the Clerk is claimed on the Maryland

tion to the form. If the transferor/seller was

entity that is taxed for federal purposes as a

income tax return filed by transferor for the

issued an individual taxpayer identification

C corporation, multiply the amount on line 4

tax year in which the transfer of the real

number (ITIN) by the IRS, enter the ITIN.

by 8.25% and enter this amount on line 5.

property and associated personal property in

Maryland is sold. You may elect to receive a

Enter the information describing the

Line 5b. If you are an individual, multiply the

refund of excess income tax withheld prior to

Maryland real property transaction.

amount on line 4 by 6.75% and enter this

filing the income tax return. Use Form

amount on line 5.

MW506R to apply for a refund of the amount

Line a. Enter the date of the closing.

of tax withheld on the sale or transfer of

Line 6. Subtract the amount on line 5 from

Maryland real property interests by a nonresi-

Line b. Enter the Maryland property account

the amount on line 1. If an overpayment is

dent individual or nonresident entity which is

ID number assigned by the State Department

shown on line 6, the Revenue dministration

in excess of the transferor/seller’s tax liability

of ssessments and Taxation, if known.

Division will refund any amount of $1.00 or

for the transaction. Form MW506R may be

more.

filed not less than 60 days after the date the

Line c. Enter the description of the property.

tax withheld is paid to the Clerk of the Circuit

Include the street address, county, or district,

Signature(s)

Court. Form MW506R may NOT be filed if

subdistrict and lot numbers if no address is

the transfer occurs after November 1, 2012.

available.

Form MW506R must be signed by an

ny Form MW506R that is filed for a transfer

individual (both taxpayer and spouse, if filing

occuring after November 1, 2012 will be

Line d. Enter use of property at the time of

a joint income tax return), or a responsible

rejected.

settlement and specify length of use.

officer of the company or corporation.

IMPORT NT: The tentative refund calculation

Check the box applicable to the type of tax-

Your signature(s) signifies that your appli-

is limited to the Schedule for Computation of

cation, including all attachments, is, to the

payer.

Cost or Other Basis, without regard to the

best of your knowledge and belief, true, cor-

federal exclusion for a principal residence.

rect and complete, under penalties of perjury.

Line 1. Enter the amount of tax withheld and

reported on Line 8i of the Form MW506NRS.

Who May File an pplication

If a power of attorney is necessary, com-

photocopy of Copy C of the Form

plete federal Form 2848 and attach to your

MW506NRS must be attached to the Form.

n individual, fiduciary, or C corporation

application.

Retain the original Copy C with your tax

transferor/seller may file Form MW506R.

records.

pass-through entity transferor/seller may not

Where to File

file Form MW506R.

Line 2. Enter the gross sales price from the

File the completed Form MW506R with

sale. ttach a copy of the HUD-1 closing

NOTE: Generally, any claim for refund or

the:

statement from the sale of this property.

credit for overpayment of taxes must be filed

within three years from the date the return is

Comptroller of Maryland

Line 3. In general, the cost or adjusted basis

filed or within two years from the date the tax

Revenue dministration Division

is the cost of the property plus purchase

is paid, whichever is later.

ttn: NRS Special Refunds

commissions and improvements, minus

P.O. Box 2031

depreciation (if applicable). Increase the cost

nnapolis, MD 21404-2031

or other basis by any expense of sale, such

or e-mail the completed form and all

as commissions and state transfer taxes.

attachments to nrshelp@comp.state.md.us

Complete the Schedule for Computation of

Cost or Other Basis on the bottom of Form

Note: The e-mail submission will not expedite

MW506R and enter the amount from line d

the processing of your application.

on line 3. Purchase price and improvement

documentation is required.

dditional Information

If the property was inherited, enter the value

For additional information visit

of the property at the date of death. This fig-

, e-mail

ure is generally obtained through a certified

nrshelp@comp.state.md.us or call

appraisal done within 6 months of date of

1-800-MDT XES (1-800-638-2937) or

death.

printout from the State Department

410-260-7980 in Central Maryland.

of ssessments and Taxation, from that time

frame, is also acceptable.

Form Mw506r Draft - Application For Tentative Refund Of Withholding On Sales Of Real Property By Nonresidents 2012 Page 2

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