Return of Income Tax Withholding for Nonresident Sale of Real ...

MarylandFormMW506NRSReturn of Income Tax Withholding forNonresident Sale of Real PropertyComptroller of MarylandRevenue Administration DivisionAnnapolis, Maryland 21411-000120__ __• ATTACH CHECK OR MONEY ORDER AND FILE WITH THE CLERK OF THE CIRCUIT COURT •1. Description and address of property transferred (include property account ID number) 7. Transferor/Seller Is:An Individual or a revocable living trustA corporationA trust or estate2. Date of transfer 3. Check box if the transferor/seller is reporting gain under theInstallment method4. Transferor/Seller's Identification no.(SSN or FEIN) (Enter only one number)5. Spouse's SSN6. Transferor/Seller's name (Enter only one name, unless husband and wife filinga joint return. If more than one transferor/seller, use separate forms for each)Street addressCity, state, and ZIP codeUnder the Penalties of perjury, I declare that I have examined this return andto the best of my knowledge and belief, it is true, correct and complete. Ifprepared by a person other than the transferor/seller, the declaration is basedon all information to which the preparer has any knowledge.A partnershipAn S corporationA Limited Liability Company8. Computation of Total Payment and Tax to be Withheld (See instructions)a. Total sales priceb. Less selling expensesc. Net sales priced. Less debts secured by mortgages or otherliens on the propertye. Total Paymentf. Transferor/Seller's ownership percentageg. Transferor/Seller's share of Total Paymenth. Enter h(1) or h(2) whichever applies.(1) If a business entity -7%(2) If an individual - 6% }i. Maryland Income Tax withheld(Multiply Line g by Line h)(If certificate of partial exemption granted,enter amount from Line 3 of the FormMW506E)$$SignatureDateCOM/RAD-308 (Rev. 06/05) Copy A - For Comptroller of Maryland, Revenue Administration Division. (File with Clerk of the Circuit Court)-------------------------------------------INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FORNONRESIDENT SALE OF REAL PROPERTY (FORM MW506NRS)THERE ARE FOUR COPIES OF FORM MW506NRS.General InstructionsPurpose of FormForm MW506NRS is designed to assure the regular andtimely collection of Maryland income tax due fromnonresident sellers of real property located within theState. This form is used to determine the amount ofincome tax withholding due on the sale of property andprovide for its collection at the time of the sale or transfer.Who must file Form MW506NRSIf the transferor/seller is a nonresident individual ornonresident entity, and is transferring an interest in realproperty located within the State of Maryland, unless thetransaction is otherwise exempt from the income taxwithholding requirement, the person responsible forclosing must file Form MW506NRS with the deed or otherinstrument of transfer that will be filed with the Clerk ofthe Circuit Court for recordation. If there are multipletransferors/sellers, a separate form must be completedfor each nonresident individual or nonresident entitysubject to the withholding requirements. The separateform requirement does not apply to a husband and wifefiling a joint Maryland income tax return.A "nonresident entity" is defined to mean an entity that:(1) is not formed under the laws of Maryland, or (2) is notqualified by or registered with the Department ofAssessments and Taxation to do business in Maryland.When to file Form MW506NRSUnless the transaction is otherwise exempt from theincome tax withholding requirement, the personresponsible for closing must include with the deed orother instrument of transfer, a Form MW506NRS for eachnonresident transferor/seller, when the deed or otherinstrument of transfer is presented to the Clerk of theCircuit Court for recordation.What to fileCopies A and B of each Form MW506NRS must be filedwith the deed or other instrument of transfer whenpresented to the Clerk of the Circuit Court for recordation.A separate check or money order in the aggregateamount of the tax due for each nonresidenttransferor/seller with regard to a sale or transfer of realproperty must be paid to the Clerk.Give Copy C to the transferor/seller at closing and retainCopy D for your records.Specific InstructionsLine 1. Enter the street address for the property as listedwith the State Department of Assessments and Taxation(SDAT). If the property does not have a street address,provide such descriptive information as is used by SDATto identify the property. Also include the SDAT propertyaccount ID number for the parcel being transferred. If theproperty is made up of more than one parcel and hasmore than one account number, include all applicableaccount numbers.Line 2. Enter the date of transfer. The date of transfer isthe effective date of the deed as defined in §3-201 of theReal Property Article, Annotated Code of Maryland. Theeffective date is the later of: (1) the date of the lastacknowledgement; or (2) the date stated in the deed.Line 3. Check the box if the transferor/seller is reportingthe gain under the installment method.Line 4, 5 and 6. Unless transferors/sellers are husbandand wife and filing a joint Maryland income tax return, aseparate Form MW506NRS must be completed for eachtransferor/seller that is entitled to receive any part of theproceeds of the transfer. Enter the tax identificationnumber or social security number for the nonresidenttransferor/seller and the social security number for thespouse, if applicable. (Do NOT enter the tax number on CopyB of Form MW506NRS.) Enter the name (or names, if husbandand wife filing a joint return) of the transferor/seller and thetransferor/seller's address. Do not enter the street address ofthe property being transferred.Line 7. Check the appropriate box for the transferor/seller.Line 8. If a Certificate of Partial Exemption is issued by theComptroller, do not complete lines 8a through 8h. Instead,enter the amount from Line 3 of the Form MW506E on Line 8i.Complete this section to determine the Total Payment allocableto the transferor/seller that is subject to the income taxwithholding requirements and the amount of tax required to bewithheld. The total payment is computed by deducting fromthe total sales price (including the fair market value of anyproperty or other nonmonetary consideration paid to or otherwisetransferred to the transferor/seller) the amount of anymortgages or other liens, the commission payable on accountof the sale, and any other expenses due from the seller inconnection with the sale.Line f. If there are multiple owners, enter the percentage ofownership of the transferor/seller for whom this form is beingfiled.Line g. Multiply line e by line f to determine the transferor/seller's share of the total payment.Line h. Enter the applicable rate for the transferor/seller.Payment of TaxMake check or money order payable to the Clerk of the CircuitCourt for the county or Baltimore City in which the deed or otherinstrument of transfer will be presented for recordation.SignatureThis return must be verified and signed by the individualtransferor/seller, an authorized person or officer of a businessentity, or the person responsible for closing.

MarylandFormMW506NRSReturn of Income Tax Withholding forNonresident Sale of Real PropertyComptroller of MarylandRevenue Administration DivisionAnnapolis, Maryland 21411-000120__ __• FILE WITH THE CLERK OF THE CIRCUIT COURT •1. Description and address of property transferred (include property account ID number) 7. Transferor/Seller Is:An Individual or a revocable living trustA corporationA trust or estate2. Date of transfer• 4. Transferor/Seller's Identification no.(SSN or FEIN) (Enter only one number)• 5. Spouse's SSN6. Transferor/Seller's name (Enter only one name, unless husband and wife filinga joint return. If more than one transferor/seller, use separate forms for each)Street addressCity, state, and ZIP codeCOM/RAD-308 (Rev. 06/05)Copy B - For Clerk of the Court.A partnershipAn S corporationA Limited Liability Company-------------------------------------------THERE ARE FOUR COPIES OF FORM MW506NRS.Purpose of FormForm MW506NRS is designed to assure the regular andtimely collection of Maryland income tax due fromnonresident sellers of real property located within theState. This form is used to determine the amount ofincome tax withholding due on the sale of property andprovide for its collection at the time of the sale or transfer.What to fileA copy of each Copy A will be filed with FormMW508NRS on or before the 21st day of the monthfollowing the month in which the Form MW506NRS isfiled with the Clerk of the Circuit Court. The Clerk of theCircuit Court shall remit the forms to the Comptroller ofMaryland in accordance with the instructions for FormMW508NRS.3. Check box if the transferor/seller is reporting gain under theInstallment method8. Computation of Total Payment (See instructions)a. Total sales priceb. Less selling expensesc. Net sales priced. Less debts secured by mortgages or otherliens on the propertye. Total Paymentf. Transferor/Seller's ownership percentageg. Transferor/Seller's share of Total Paymenth. Enter h(1) or h(2) whichever applies.(1) If a business entity -7%(2) If an individual - 6% }i. Maryland Income Tax withheld(Multiply Line g by Line h)(If certificate of partial exemption granted,enter amount from Line 3 of the FormMW506E)Form is a full page. Do NOT cut along dashed line before filing.INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FORNONRESIDENT SALE OF REAL PROPERTY (FORM MW506NRS)$$

MarylandFormMW506NRSReturn of Income Tax Withholding forNonresident Sale of Real PropertyComptroller of MarylandRevenue Administration DivisionAnnapolis, Maryland 21411-000120__ __• RETAIN AND KEEP WITH INCOME TAX RECORDS •1. Description and address of property transferred (include property account ID number) 7. Transferor/Seller Is:An Individual or a revocable living trustA corporationA trust or estate2. Date of transfer4. Transferor/Seller's Identification no.(SSN or FEIN) (Enter only one number)5. Spouse's SSN• 6. Transferor/Seller's name (Enter only one name, unless husband and wife filinga joint return. If more than one transferor/seller, use separate forms for each)Street addressCity, state, and ZIP codeCOM/RAD-308 (Rev. 06/05)3. Check box if the transferor/seller is reporting gain under theInstallment methodCopy C - For Transferor/Seller (Records Copy).8. Computation of Total Payment (See instructions)a. Total sales priceb. Less selling expensesc. Net sales priced. Less debts secured by mortgages or otherliens on the propertye. Total Paymentf. Transferor/Seller's ownership percentageg. Transferor/Seller's share of Total Paymenth. Enter h(1) or h(2) whichever applies.(1) If a business entity -7%(2) If an individual - 6% }i. Maryland Income Tax withheld(Multiply Line g by Line h)(If certificate of partial exemption granted,enter amount from Line 3 of the FormMW506E)A partnershipAn S corporationA Limited Liability Company-------------------------------------------INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FORNONRESIDENT SALE OF REAL PROPERTY (FORM MW506NRS)$$General InstructionsPurpose of FormForm MW506NRS is designed to assure the regular andtimely collection of Maryland income tax due fromnonresident sellers of real property located within theState. This form is used to determine the amount ofincome tax withholding due on the sale of property andprovide for its collection at the time of the sale or transfer.When to fileA nonresident individual or nonresident entity that sellsreal or personal property located in Maryland must file aMaryland income tax return. The appropriate income taxreturn must be filed for the year in which the transfer ofthe real property occurred. The due date for each incometax return type can be found in the instructions to thespecific income tax return.What to fileThe nonresident individual or nonresident entity must filethe appropriate Maryland income tax return for the year inwhich the transfer of the property occurred. Do NOTsubmit Copy C of the Form MW506NRS with the returnfiled with the Comptroller of Maryland. See the specificinstructions for the tax return being filed.Specific Instructions for Transferor/SellerHow to claim the tax withheldThe manner in which the income tax withheld is claimedby the nonresident individual or nonresident entitydepends on the type of Maryland income tax return youare required to file. Follow the specific instructions below.Claiming the income tax withheld in a manner or on a lineother than listed below may result in the withholding beingdenied.Individuals and Revocable Living TrustsNonresident individuals are required to file a NonresidentMaryland Income Tax Return (Form 505). The income taxwithheld and reported on Line 8 of the Form MW506NRSmust be claimed as an estimated income tax payment(Line 44 on the 2005 Form 505).C CorporationsC Corporations are required to file a MarylandCorporation Income Tax Return (Form 500). The incometax withheld and reported on Line 8 of the FormMW506NRS must be claimed as an estimated incometax payment (Line 10a on the 2005 Form 500).S Corporations, Partnerships and Limited LiabilityCompaniesS corporations, partnerships and limited liabilitycompanies that elect to be treated as pass-throughentities must file a Maryland Pass-through Entity IncomeTax Return (Form 510). The income tax withheld andreported on Line 8 of the Form MW506NRS must beclaimed as an estimated income tax payment.This tax, and any other tax paid with the Form 510 mustbe allocated to the nonresident shareholders, partners ormembers and reported on a modified federal Schedule K-1 orMaryland statement. All tax allocated to a nonresidentshareholder, partner or member must be claimed as anonresident tax paid by S corporations, or other unincorporatedbusiness entities (Line 46 on the 2005 Form 505).Trusts and EstatesTrustees of trusts and personal representatives of estates arerequired to file a Maryland Fiduciary Income Tax Return (Form504) The income tax withheld and reported on Line 8 of theForm MW506NRS must be claimed as an estimated incometax payment.

MarylandFormMW506NRSReturn of Income Tax Withholding forNonresident Sale of Real PropertyComptroller of MarylandRevenue Administration DivisionAnnapolis, Maryland 21411-000120__ __• RETAIN WITH SETTLEMENT FILE •1. Description and address of property transferred (include property account ID number) 7. Transferor/Seller Is:An Individual or a revocable living trustA corporationA trust or estate2. Date of transfer4. Transferor/Seller's Identification no.(SSN or FEIN) (Enter only one number)• 5. Spouse's SSN6. Transferor/Seller's name (Enter only one name, unless husband and wife filinga joint return. If more than one transferor/seller, use separate forms for each)Street addressCity, state, and ZIP codeCOM/RAD-308 (Rev. 06/05)3. Check box if the transferor/seller is reporting gain under theInstallment methodCopy D - For Issuer.8. Computation of Total Payment (See instructions)a. Total sales priceb. Less selling expensesc. Net sales priced. Less debts secured by mortgages or otherliens on the propertye. Total Paymentf. Transferor/Seller's ownership percentageg. Transferor/Seller's share of Total Paymenth. Enter h(1) or h(2) whichever applies.(1) If a business entity -7%(2) If an individual - 6% }i. Maryland Income Tax withheld(Multiply Line g by Line h)(If certificate of partial exemption granted,enter amount from Line 3 of the FormMW506E)A partnershipAn S corporationA Limited Liability Company-------------------------------------------INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FORNONRESIDENT SALE OF REAL PROPERTY (FORM MW506NRS)$$THERE ARE FOUR COPIES OF FORM MW506NRS.General InstructionsPurpose of FormForm MW506NRS is designed to assure the regular andtimely collection of Maryland income tax due fromnonresident sellers of real property located within theState. This form is used to determine the amount ofincome tax withholding due on the sale of property andprovide for its collection at the time of the sale or transfer.Who must file Form MW506NRSIf the transferor/seller is a nonresident individual or entity,and is transferring an interest in real property locatedwithin the State of Maryland, unless the transaction isotherwise exempt from the income tax withholdingrequirement, the person responsible for closing must fileForm MW506NRS with the deed or other instrument oftransfer that will be filed with the Clerk of the Circuit Courtfor recordation. If there are multiple transferors/sellers, aseparate form must be completed for each nonresidentindividual or nonresident entity subject to the withholdingrequirements. The separate form requirement does notapply to a husband and wife filing a joint Maryland incometax return.When to file Form MW506NRSUnless the transaction is otherwise exempt from theincome tax withholding requirement, the personresponsible for closing must include with the deed orother instrument of transfer, a Form MW506NRS for eachnonresident transferor/seller, when the deed or otherinstrument of transfer is presented to the Clerk of theCircuit Court for recordation.What to fileCopies A and B of each Form MW506NRS must be filedwith the deed or other instrument of transfer whenpresented to the Clerk of the Circuit Court for recordation.A separate check or money order in the aggregateamount of the tax due for each nonresidenttransferor/seller with regard to a sale or transfer of realproperty must be paid to the Clerk.Give Copy C to the transferor/seller at closing and retainCopy D for your records.Specific InstructionsLine 1. Enter the street address for the property as listedwith the State Department of Assessments and Taxation(SDAT). If the property does not have a street address,provide such descriptive information as is used by SDATto identify the property. Also include the SDAT propertyaccount ID number for the parcel being transferred. If theproperty is made up of more than one parcel and hasmore than one account number, include all applicableaccount numbers.Line 2. Enter the date of transfer. The date of transfer isthe effective date of the deed as defined in §3-201 of theReal Property Article, Annotated Code of Maryland. Theeffective date is the later of: (1) the date of the lastacknowledgement; or (2) the date stated in the deed.Line 3. Check the box if the transferor/seller is reportingthe gain under the installment method.Line 4, 5 and 6. Unless transferors/sellers are husbandand wife and filing a joint Maryland income tax return, aseparate Form MW506NRS must be completed for eachtransferor/seller that is entitled to receive any part of theproceeds of the transfer. Enter the tax identificationnumber or social security number for the nonresidenttransferor/seller and the social security number for thespouse, if applicable. (Do NOT enter the tax number on CopyB of Form MW506NRS.) Enter the name (or names, if husbandand wife filing a joint return) of the transferor/seller and thetransferor/seller's address. Do not enter the street address ofthe property being transferred.Line 7. Check the appropriate box for the transferor/seller.Line 8. If a Certificate of Partial Exemption is issued by theComptroller, do not complete lines 8a through 8h. Instead,enter the amount from Line 3 of the Form MW506E on Line 8i.Complete this section to determine the Total Payment allocableto the transferor/seller that is subject to the income taxwithholding requirements and the amount of tax required to bewithheld. The total payment is computed by deducting fromthe total sales price (including the fair market value of anyproperty or other nonmonetary consideration paid or otherwisetransferred to the transferor/seller) the amount of anymortgages or other liens, the commission payable on accountof the sale, and any other expenses due from the seller inconnection with the sale.Line f. If there are multiple owners, enter the percentage ofownership of the transferor/seller for whom this form is beingfiled.Line g. Multiply line e by line f to determine the transferor/seller's share of the total payment.Line h. Enter the applicable rate for the transferor/seller.Payment of TaxMake check or money order payable to the Clerk of the CircuitCourt for the county or Baltimore City in which the deed or otherinstrument of transfer will be presented for recordation.