MARYLAND'S

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MARYLAND'S WITHHOLDING REQUIREMENTS for Sales or Transfers of Real Property and Associated Personal Property by Nonresidents Revised 10/19 2 MARY LAND S WITHHOLDING REQUIREMENTS for Sales or Transfers of Real Property and Associated Personal Property by Nonresidents Table of Contents Introduction ........................................ ........................................ ..................................... 3 Our Most Frequently Asked Questions ........................................ ................................... 5 Frequently Asked Questions ........................................ ........................................ ............ 7 Helpful Links ........................................ ........................................ ................................. 11 3 Introduction In 2003, the General Assembly enacted Section 10-912 of the Tax-General Article, Annotated Code of Maryland, which provides for income tax withholding on sales or transfers of real property and associated tangible personal property in Maryland by nonresident individuals and nonresident entities.

The transferor mustfile a Maryland income tax return for the tax year in which the sale or transfer of the real property occurred to report the gain or loss on the sale and will claim the withholding payment made with Form MW506NRS. If the amount paid to the Clerk or Department is in excess of the income tax due on the sale or transfer ...

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