Form
MW506NRS
Maryland Return of Income Tax Withholding
for Nonresident Sale of Real Property
2021
• 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)
2. Date of transfer
3. Check box if the transferor/
seller is reporting gain under
the installment method
4.Transferor/Seller’sidenticationno.
(SSN or FEIN) (Enter only one number)
5. Spouse’s SSN
6. Transferor/Seller’s name
(Enter only one name, unless spouses are ling a
joint return. If more than one transferor/seller, use separate forms for each)
Street address
City, State and ZIP code
7. Transferor/Seller is:
An Individual/Estate/Trust A Partnership
A Corporation An S Corporation
A Business Trust A Limited Liability Company
Copy A - For Comptroller of Maryland, Revenue Administration Division. (File with Clerk of the Circuit Court)
Signature Date
Under penalties of perjury, I declare that I have examined this return and to the best of my knowledge
and belief, it is true, correct and complete. If prepared by a person other than the transferor/seller, the
declaration is based on all information to which the preparer has any knowledge.
Preparer’s Name
__________________________________________
Preparer’s Phone Number
___________________________________
COM/RAD-308 20-49
8.
Computation of Total Payment and Tax to be Withheld (See Instructions)
a. Total sales price $ ____________
b. Less selling expenses ____________
c. Net sales price ____________
d. Less debts secured by mortgages or
other liens on the property
____________
e. Total payment ____________
f. Transferor/Seller’s ownership percentage
____________
g. Transferor/Seller’s share of total payment
____________
h. Enter h(1) or h(2) whichever applies
(1) If a business entity - 8.25%
(2) If an individual/estate/trust - 8.0%
____________
i. Maryland Income Tax withheld (Multiply
Line g by Line h) (If certicate of partial
exemption granted, enter amount from
Line 3 of the Form MW506E)
$
}
COM/RAD-308 21-49
INSTRUCTIONS FOR RETURN OF INCOME TAX WITHHOLDING FOR NONRESIDENT SALE OF REAL PROPERTY
(FORM MW506NRS)
THERE ARE FOUR COPIES OF FORM
MW506NRS.
General Instructions
Purpose of Form
Form MW506NRS is designed to assure the regular
and timely collection of Maryland income tax due
from nonresident sellers of real property located
within the State. This form is used to determine the
amount of income tax withholding due on the sale of
property and provide for its collection at the time of
the sale or transfer.
Who must le Form MW506NRS
If the transferor/seller is a nonresident individual or
nonresident entity, and is transferring an interest in
real property located within the State of Maryland,
unless the transaction is otherwise exempt from
the income tax withholding requirement, the person
responsible for closing must le Form MW506NRS
with the deed or other instrument of transfer that
will be led with the Clerk of the Circuit Court for
recordation. If there are multiple transferors/
sellers, a separate form must be completed for each
nonresident individual or nonresident entity subject
to the withholding requirements. The separate form
requirement does not apply to spouses ling a joint
Maryland income tax return.
A “nonresident entity” is dened to mean an entity
that: (1) is not formed under the laws of Maryland
more than 90 days before the date of sale of the
property, and (2) is not qualied by or registered
with the Department of Assessments and Taxation
to do business in Maryland more than 90 days before
the date of sale of the property.
When to le Form MW506NRS
Unless the transaction is otherwise exempt from
the income tax withholding requirement, the person
responsible for closing must include with the deed or
other instrument of transfer, a Form MW506NRS for
each nonresident transferor/seller, when the deed or
other instrument of transfer is presented to the Clerk
of the Circuit Court for recordation.
What to le
Copies A and B of each Form MW506NRS must be
led with the deed or other instrument of transfer
when presented to the Clerk of the Circuit Court
for recordation. A separate check or money order
in the aggregate amount of the tax due for each
nonresident transferor/seller with regard to a sale or
transfer of real property must be paid to the Clerk.
Give Copy C to the transferor/seller at closing. The
issuer retains Copy D.
Specic Instructions
Line 1. Enter the street address for the property
as listed with 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 SDAT to identify the property. Also
include the SDAT property account ID number for
the parcel being transferred. If the property is made
up of more than one parcel and has more than
one account number, include all applicable account
numbers.
Line 2. Enter the date of transfer. The date of
transfer is the eective date of the deed as dened in
§3-201 of the Real Property Article, Annotated Code
of Maryland. The eective date is the later of: (1) the
date of the last acknowledgement; or (2) the date
stated in the deed.
Line 3. Check the box if the transferor/seller is
reporting the gain under the installment method.
Lines 4, 5 and 6. Unless transferors/sellers
are spouses and ling a joint Maryland income
tax return, a separate Form MW506NRS must be
completed for each transferor/seller that is entitled
to receive any part of the proceeds of the transfer.
Enter the tax identication number or social security
number for the nonresident transferor/seller and the
social security number for the spouse, if applicable.
(Do NOT enter the tax identication number on
Copy B of Form MW506NRS.) Enter the name (or
names, if spouses are ling a joint return) of the
transferor/seller and the transferor/seller’s address.
Do not enter the street address of the property being
transferred.
Line 7. Check the appropriate box for the
transferor/seller.
Line 8. If a Certicate of Partial Exemption is
issued by the Comptroller, do not complete lines 8a
though 8h. Instead, enter the amount from Line 3 of
the Form MW506E on Line 8i.
Complete this section to determine the total
payment allocable to the transferor/seller that is
subject to the income tax withholding requirements
and the amount of tax required to be withheld. The
total payment is computed by deducting from the
total sales price (including the fair market value of
any property or other nonmonetary consideration
paid to or otherwise transferred to the transferor/
seller) the amount of any mortgages or other liens,
the commission payable on account of the sale, and
any other expenses due from the seller in connection
with the sale.
Line f. If there are multiple owners, enter the
percentage of ownership of the transferor/
seller for whom this form is being led.
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 Tax
Make check or money order payable to the Clerk of
the Circuit Court for the county or Baltimore City in
which the deed or other instrument of transfer will be
presented for recordation.
Signature
Copy A of this return must be veried and signed
by the individual transferor/seller, an authorized
person or ocer of a business entity or the person
responsible for closing.
