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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)

COM/RAD-308

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Copy D - For Issuer

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

(FORM MW506NRS)

THERE ARE FOUR COPIES OF FORM

be filed with the deed or other instrument of

tax identification number on Copy B of Form

MW506NRS.

transfer when presented to the Clerk of the

MW506NRS.) Enter the name (or names, if

Circuit Court for recordation. A separate check

husband and wife filing a joint return) of the

General Instructions

or money order in the aggregate amount of the

transferor/seller

and

the

transferor/seller’s

Purpose of Form

tax due for each nonresident transferor/seller

address. Do not enter the street address of the

Form MW506NRS is designed to assure the

with regard to a sale or transfer of real property

property being transferred.

regular and timely collection of Maryland

must be paid to the Clerk.

Line 7.

Check the appropriate box for the

income tax due from nonresident sellers of real

Give Copy C to the transferor/seller at closing.

transferor/seller.

property located within the State. This form is

The issuer retains Copy D.

Line 8.

If a Certificate of Partial Exemption is

used to determine the amount of income tax

Specific Instructions

issued by the Comptroller, do not complete lines

withholding due on the sale of property and

8a though 8h. Instead, enter the amount from

provide for its collection at the time of the sale

Line 1.

Enter the street address for the

Line 3 of the Form MW506E on Line 8i.

or transfer.

property as listed with the State Department

of Assessments and Taxation (SDAT). If the

Complete this section to determine the total

Who must file Form MW506NRS

property does not have a street address,

payment

allocable

the

transferor/seller

If the transferor/seller is a nonresident individual

provide such descriptive information as is used

that is subject to the income tax withholding

or entity, and is transferring an interest in real

by SDAT to identify the property. Also include

requirements and the amount of tax required to

property located within the State of Maryland,

the SDATproperty account ID number for the

be withheld. The total payment is computed by

unless the transaction is otherwise exempt from

parcel being transferred. If the property is made

deducting from the total sales price (including

the income tax withholding requirement, the

up of more than one parcel and has more than

the fair market value of any property or other

person responsible for closing must file Form

one account number, include all applicable

nonmonetary consideration paid to or otherwise

MW506NRS with the deed or other instrument

account numbers.

transferred to the transferor/seller) the amount

of transfer that will be filed with the Clerk of

of any mortgages or other liens, the commission

Line 2.

Enter the date of transfer. The date

the Circuit Court for recordation. If there are

payable on account of the sale and any other

of transfer is the effective date of the deed as

multiple transferors/sellers, a separate form

expenses due from the seller in connection with

defined in §3-201 of the Real Property Article,

must

completed

for

each

nonresident

the sale.

Annotated Code of Maryland. The effective

individual or nonresident entity subject to the

date is the later of: (1) the date of the last

Line f.

If there are multiple owners, enter

withholding requirements. The separate form

acknowledgement; or (2) the date stated in the

the percentage of ownership of the transferor/

requirement does not apply to a husband and

deed.

seller for whom this form is being filed.

wife filing a joint Maryland income tax return.

Line 3.

Check the box if the transferor/seller

Line g.

Multiply line e by line f to determine

When to file Form MW506NRS

is reporting the gain under the installment

the

transferor/seller’s

the

total

Unless the transaction is otherwise exempt from

method.

payment.

the income tax withholding requirement, the

Lines 4, 5 and 6.

Unless transferors/sellers

Line h.

Enter the applicable rate for the

person responsible for closing must include with

are husband and wife and filing a joint Maryland

transferor/seller.

the deed or other instrument of transfer, a Form

income tax return, a separate Form MW506NRS

MW506NRS for each nonresident transferor/

Payment of Tax

must be completed for each transferor/seller that

seller, when the deed or other instrument of

Make check or money order payable to the Clerk

is entitled to receive any part of the proceeds of

transfer is presented to the Clerk of the Circuit

of the Circuit Court for the county or Baltimore

the transfer. Enter the tax identification number

Court for recordation.

City in which the deed or other instrument of

or social security number for the nonresident

What to file

transfer will be presented for recordation.

transferor/seller and the social security number

Copies A and B of each Form MW506NRS must

for the spouse, if applicable. (Do NOT enter the

COM/RAD-308

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Form Mw506nrs - Maryland Return Of Income Tax Withholding For Nonresident Sale Of Real Property - 2013 Page 4

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