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2010

INSTRUCTIONS FOR APPLICATION FOR

MARYLAND FORM

MW506AE

CERTIFICATE OF FULL OR PARTIAL EXEMPTION

Provide Brief Explanation of Your Reason

Line 4. Transfer is by a tax-exempt entity

Line 9. Transfer is pursuant to a

for Requesting Exemption

for purposes of §501(a) of the Internal

condemnation and conversion into a similar

Revenue Code and transfer involves limited

property for purposes of §1033 of the

Provide a brief explanation of why the

or no unrelated business taxable income

Internal Revenue Code.

sale or transfer of the property qualifies for

under §512 of he Internal Revenue Code.

a full or partial exemption from the income

Required documentation: Copy of

tax withholding requirement. If necessary,

agreement governing transfer between

attach additional documentation to support

determination by the Internal Revenue

transferor and government body or

your request for a full or partial exemption,

Service that transferor is a tax-exempt

authority condemning the property;

and to support your calculation of the dollar

entity for purpose of §501(a) of the Internal

notarized affidavit executed by transferor

amount subject to tax, if the request is for

Revenue Code; Certificate of Good

stating that transferor will identify and

partial exemption.

Standing of transferor issued by the state in

purchase replacement property within

which transferor is incorporated; notarized

the time limits required by §1033 of the

Calculation of Tax to be Withheld

affidavit executed on behalf of transferor

Internal Revenue Code, or copy of contract

by its President and by its Treasurer stating

of sale if transferor has already identified

Complete this section if you are

that the transfer involves limited or no

replacement property. If proceeds from

requesting a partial exemption. This section

unrelated business income under §512 of

condemnation exceed price of replacement

must be completed or the application for

the Internal Revenue Code.

property, the excess must be stated on the

partial exemption will be denied.

application as the taxable amount.

Line 5. Transfer is to a partnership in

Signature(s)

exchange for an interest in the partnership

Line 10. Transfer is between spouses or

such that no gain or loss is recognized

incident to divorce for purposes of §1041 of

Form MW506AE must be signed by an

under §721 of the Internal Revenue Code.

the Internal Revenue Code.

individual (both taxpayer and spouse, if

filing a joint Maryland income tax return), or

Required documentation. Copy of

Required documentation: Copy of

a responsible corporate officer.

agreement governing transfer between

marriage license or divorce decree; copy of

transferor and transferee; copy of the

deed which will be recorded to accomplish

Please include a daytime telephone

partnership agreement of the transferee.

the transfer; if incident to divorce, copy

number where you can be reached between

of section of court order or separation

8:00 AM and 5:00 PM.

Line 6. Transfer is by a partnership to a

agreement governing transfer of the

partner of the partnership in accordance

property.

Your signature(s) signifies that your

with §731 of the Internal Revenue Code.

application, including all attachments, is, to

Line 11. Transfer is treated as a transfer by

the best of your knowledge and belief, true,

Required documentation: Copy of

an S-corporation for purposes of §1368 of

correct and complete, under the penalties

agreement governing transfer between

the Internal Revenue Code.

of perjury.

transferor and transferee; copy of the

partnership agreement of the transferor.

Required documentation: Copy of

If a power of attorney is necessary,

agreement governing transfer between

complete federal Form 2848 and attach to

Line 7. Transfer is treated as a transfer by a

transferor and transferee; copy of

your application.

real estate investment trust for purposes of

approval by the Internal Revenue Service

§857 of the Internal Revenue Code.

of transferor’s S-corporation election;

Where to File

Certificate of Good Standing of transferor

Required documentation: Copy of

issued by the state in which transferor is

Mail the completed form and all

agreement governing transfer between

incorporated.

attachments to:

transferor and transferee; certified copy

of Articles of Incorporation of transferor;

Line 12. Transfer is to a disregarded

Comptroller of Maryland

Certificate of Good Standing of transferor

entity, classified as such under 26 CFR

Revenue Administration Division

issued by the state in which transferor is

§301.7701-3, that is solely owned by the

Attn: NRS Exemption Requests

incorporated.

transferor.

P.O. Box 2031

Annapolis, MD 21404-2031

Line 8. Transfer is a tax-free exchange for

Required documentation: Copy

purposes of §1031 of the Internal Revenue

of agreement governing transfer from

Additional Information

Code.

transferor to transferee; certified copy

of transferee’s Articles of Organization;

For additional information, please call

Required documentation: Letter

Certificate of Good Standing of transferee

410-260-7980 or 1-800-MDTAXES (1-800-

signed by the qualified intermediary, or by

issued by state in which transferee is

638-2937) from Central Maryland.

the person authorized to sign on behalf of

organized; copy of transferee’s Operating

a business entity acting as the qualified

Agreement.

intermediary, which states the name(s) of

the transferor(s), the property description,

Line 13. The transfer is otherwise fully or

that the individual or business will be

partially exempt from the recognition of gain

acting as the qualified intermediary for the

in accordance with attached explanation.

transferor(s) as part of a 1031 exchange

of the property, whether there will be any

Required documentation: Attach any

boot, and if so, the amount of boot. The

and all documents necessary to show that

amount of any boot must be stated on the

the transfer is fully or partially exempt from

application as the taxable amount.

tax.

Maryland Form Mw506ae Draft - Application For Certificate Of Full Or Partial Exemption - 2010 Page 4

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