Fill - Free fillable Form 8.: An Individual/Estate/Trust A Partnership A Corporation (Comptroller of Maryland) PDF form

Form

MW506NRS

Maryland Return of Income Tax Withholding

for Nonresident Sale of Real Property

2020

• 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’sidenticationno.

(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 + 4

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

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 certicate of partial

exemption granted, enter amount from

Line 3 of the Form MW506E)

}

COM/RAD-308

20-49

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 dened 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 qualied 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.

Specic 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 effective date of the deed as dened in

§3-201 of the Real Property Article, Annotated Code

of Maryland. The effective 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 identication 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 identication 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 Certicate 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 veried and signed

by the individual transferor/seller, an authorized

person or ofcer of a business entity or the person

responsible for closing.

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 certicate of partial

exemption granted, enter amount from

Line 3 of the Form MW506E)

}

COM/RAD-308

20-49

Form

MW506NRS

Maryland Return of Income Tax Withholding

for Nonresident Sale of Real Property

2020

• 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’s identication no.

(SSN or FEIN) (Enter only one number)

5. Spouse’s SSN

7. Transferor/Seller is:

An Individual/Estate/Trust A Partnership

A Corporation An S Corporation

A Business Trust A Limited Liability Company

Copy B - For Clerk of the Court

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.

What to le

A copy of each Copy A will be led with Form

MW508NRS on or before the 21st day of the

month following the month in which the Form

MW506NRS is led with the Clerk of the Circuit

Court. The Clerk of the Circuit Court shall

remit the forms to the Comptroller of Maryland

in accordance with the instructions for Form

MW508NRS.

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

(FORM MW506NRS)

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 + 4

COM/RAD-308

20-49

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 certicate of partial

exemption granted, enter amount from

Line 3 of the Form MW506E)

}

COM/RAD-308

20-49

Form

MW506NRS

Maryland Return of Income Tax Withholding

for Nonresident Sale of Real Property

2020

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’s identication no.

(SSN or FEIN) (Enter only one number)

5. Spouse’s SSN

7. Transferor/Seller is:

An Individual/Estate/Trust A Partnership

A Corporation An S Corporation

A Business Trust A Limited Liability Company

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

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

A nonresident individual or nonresident entity

that sells real property located in Maryland

must le a Maryland income tax return. The

appropriate income tax return must be led

for the year in which the transfer of the real

property occurred. The due date for each income

tax return type can be found in the instructions

to the specic income tax return.

What to le

The nonresident individual or nonresident entity

must le the appropriate Maryland income tax

return for the year in which the transfer of the

property occurred. Do NOT submit Copy C of

the Form MW506NRS with the return led with

the Comptroller of Maryland. See the specic

instructions for the tax return being led.

Specic Instructions for Transferor/Seller

How to claim the tax withheld

The manner in which the income tax withheld

is claimed by the nonresident individual or

nonresident entity depends on the type of

Maryland income tax return you are required

to le. Follow the specic instructions below.

Claiming the income tax withheld on a line

other than as described below may result in the

withholding being denied.

Individuals and Revocable Living Trusts

Nonresident individuals are required to le a

Nonresident Maryland Income Tax Return (Form

505). The income tax withheld and reported on

Line 8 of the Form MW506NRS must be claimed

as an estimated income tax payment.

C Corporations

C corporations are required to le a Maryland

Corporation Income Tax Return (Form 500). The

income tax withheld and reported on Line 8 of

the Form MW506NRS must be claimed as an

estimated income tax payment.

S Corporations, Partnerships and Limited

Liability Companies and Business Trusts

S corporations, partnerships and limited liability

companies and business trusts that elect to

be treated as pass-through entities must le

a Maryland Pass-Through Entity Income Tax

Return (Form 510). The income tax withheld

and reported on Line 8 of the Form MW506NRS

must be claimed as an estimated income tax

payment.

This tax, and any other tax paid with the Form

510 must be allocated to the nonresident

shareholders, partners or members and

reported on a modied federal Schedule K-1

or Maryland statement. All tax allocated to a

nonresident shareholder, partner or member

must be claimed as a nonresident tax paid by S

corporations, or other unincorporated business

entities.

Trusts and Estates

Trustees of trusts and personal representatives

of estates are required to le a Maryland

Fiduciary Income Tax Return (Form 504). The

income tax withheld and reported on Line 8 of

the Form MW506NRS must be claimed as an

estimated tax payment.

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

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

(FORM MW506NRS)

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 + 4

COM/RAD-308

20-49

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 certicate of partial

exemption granted, enter amount from

Line 3 of the Form MW506E)

}

COM/RAD-308

20-49

Form

MW506NRS

Maryland Return of Income Tax Withholding

for Nonresident Sale of Real Property

2020

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’s identication no.

(SSN or FEIN) (Enter only one number)

5. Spouse’s SSN

7. Transferor/Seller is:

An Individual/Estate/Trust A Partnership

A Corporation An S Corporation

A Business Trust A Limited Liability Company

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

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 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.

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.

Specic 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 SDATproperty 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 effective date of the deed as

dened in §3-201 of the Real Property Article,

Annotated Code of Maryland. The effective

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 identication 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 identication number on Copy B of Form

MW506NRS.) Enter the name (or names, if

spouses 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 Certicate 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.

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 + 4

COM/RAD-308

20-49

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Form 8.: An IndividualEstateTrust A Partnership A Corporation (Comptroller of Maryland)

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