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

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

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