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2013

Form

Maryland Return of Income Tax Withholding

MW506NRS

for Nonresident Sale of Real Property

1. Description and address of property transferred (include property account

7. Transferor/Seller is:

ID number)

An Individual/Estate/Trust

A Partnership

A Corporation

An S Corporation

A Business Trust

A Limited Liability Company

8. Computation of Total Payment and Tax to be Withheld (See Instructions)

3. Check box if the transferor/

2. Date of transfer

a. Total sales price

$ ____________

seller is reporting gain under

the installment method

b. Less selling expenses

____________

c. Net sales price

____________

4. Transferor/Seller’s identification no.

5. Spouse’s SSN

d. Less debts secured by mortgages or

(SSN or FEIN) (Enter only one number)

other liens on the property

____________

e. Total payment

____________

6. Transferor/Seller’s name (Enter only one name, unless husband and wife filing

f. Transferor/Seller’s ownership percentage

____________

a joint return. If more than one transferor/seller, use separate forms for each)

g. Transferor/Seller’s share of total payment ____________

h. Enter h(1) or h(2) whichever applies

}

(1) If a business entity - 8.25%

Street address

(2) If an individual/estate/trust - 7%

____________

i. Maryland Income Tax withheld (Multiply

Line g by Line h) (If certificate of partial

City, state and ZIP code

exemption granted, enter amount from

Line 3 of the Form MW506E)

Copy C - For Transferor/Seller (Records Copy).

COM/RAD-308

12-49

INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FOR NONRESIDENT SALE OF REAL PROPERTY

(FORM MW506NRS)

THERE ARE FOUR COPIES OF FORM

Maryland income tax return you are required

Trusts and Estates

MW506NRS.

to file. Follow the specific instructions below.

Trustees of trusts and personal representatives

Claiming the income tax withheld on a line

General Instructions

of estates are required to file a Maryland

other than as described below may result in the

Fiduciary Income Tax Return (Form 504). The

withholding being denied.

Purpose of Form

income tax withheld and reported on Line 8 of

Individuals and Revocable Living Trusts

the Form MW506NRS must be claimed as an

Form MW506NRS is designed to assure the

estimated tax payment.

regular and timely collection of Maryland

Nonresident individuals are required to file a

income tax due from nonresident sellers of real

Nonresident Maryland Income Tax Return (Form

property located within the State. This form is

505). The income tax withheld and reported on

used to determine the amount of income tax

Line 8 of the Form MW506NRS must be claimed

withholding due on the sale of property and

as an estimated income tax payment.

provide for its collection at the time of the sale

or transfer.

C Corporations

Who must file

C corporations are required to file a Maryland

Corporation Income Tax Return (Form 500). The

A nonresident individual or nonresident entity

income tax withheld and reported on Line 8 of

that sells real property located in Maryland

the Form MW506NRS must be claimed as an

must file a Maryland income tax return. The

estimated income tax payment.

appropriate income tax return must be filed

for the year in which the transfer of the real

S Corporations, Partnerships and Limited

property occurred. The due date for each income

Liability Companies and Business Trusts

tax return type can be found in the instructions

S corporations, partnerships and limited liability

to the specific income tax return.

companies and business trusts that elect to

What to file

be treated as pass-through entities must file

a Maryland Pass-Through Entity Income Tax

The nonresident individual or nonresident entity

Return (Form 510). The income tax withheld

must file the appropriate Maryland income tax

and reported on Line 8 of the Form MW506NRS

return for the year in which the transfer of the

must be claimed as an estimated income tax

property occurred. Do NOT submit Copy C of

payment.

the Form MW506NRS with the return filed with

the Comptroller of Maryland. See the specific

This tax, and any other tax paid with the Form

instructions for the tax return being filed.

510 must be allocated to the nonresident

shareholders,

partners

members

and

Specific Instructions for Transferor/Seller

reported on a modified federal Schedule K-1

or Maryland statement. All tax allocated to a

How to claim the tax withheld

nonresident shareholder, partner or member

The manner in which the income tax withheld

must be claimed as a nonresident tax paid by S

is claimed by the nonresident individual or

corporations, or other unincorporated business

nonresident entity depends on the type of

entities.

COM/RAD-308

12-49

Form Mw506nrs - Maryland Return Of Income Tax Withholding For Nonresident Sale Of Real Property - 2013 Page 3

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