Md Form Full Details

Did you know that there is a form to report your company's AE (Adverse Events)? It's called Form Mw506Ae, and it's probably something you haven't heard of before. But if you're like most businesses, you'll want to be familiar with it sooner rather than later. That's because AE reports are mandatory for all pharmaceutical and device manufacturers, and they can play a major role in keeping your operation safe and compliant. In this post, we'll take a look at what Form Mw506Ae is, and we'll explore some of the key benefits it can offer your business.

This table offers details about form mw506ae. You might like to study it before completing the form.

QuestionAnswer
Form NameForm Mw506Ae
Form Length5 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min 15 sec
Other namesmd form 506ae 2021, form mw506ae, maryland mw506ae form, maryland form mw506ae

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MARYLAND

FORM

MW506AE

2021

Application for Certificate of

Full or Partial Exemption

For the sale of real property or associated personal property

in Maryland by nonresident individuals and entities.

DO NOT WRITE OR STAPLE

IN THIS SPACE

The form and required documents MUST BE RECEIVED no later than 21 days before closing date.

Social Security Number

 

 

Spouse's Social Security Number

 

 

 

 

 

 

 

 

Your First Name

MI

 

Last Name

 

 

 

 

 

 

 

 

Spouse's First Name

MI

 

Last Name

 

 

 

 

 

 

 

 

Name (Corporation, Partnership, Trust, Estate, etc.)

 

 

 

 

 

 

 

 

 

 

 

T/A or C/O or Fiduciary

 

 

 

Federal Employer Identification Number

 

 

 

 

 

 

Present Address (No. and street)

 

 

 

 

 

 

 

 

 

 

City or Town

 

 

State

ZIP code +4

 

 

 

 

 

 

Transferor/Seller’s Entity Type:

 

Ownership Percentage

Individual/ Estate/ Trust

Business

________________________%

Property Information

Description of Property (Include street address, county, or district,

Was the property ever used as a rental or commercial property?

subdistrict and lot numbers if no address is available.)

(Note: Income tax returns are required in most circumstances - see instructions.)

 

Yes

No

 

Dates used as a rental/commercial property (mm/dd/yyyy):

 

FROM _______________ TO_________________

 

 

 

Date of Closing or signing of document (mm/dd/2021) (whichever is

 

earlier) (REQUIRED)

 

 

 

 

Calculation of Tentative Exemption - Required

(The certificate of exemption will be calculated based on actual documents received & amounts substantiated. The Comptroller’s decision to issue or deny a full or partial exemption and the amount is final and not subject to appeal.) See instructions for more details on required documentation.

1.

Purchase price/Inherited value. (Attach a copy of the settlement statement

 

 

or Death Certificate and appraisal.)

1. ____________

2.

Capital Improvements. (Optional. Will not be credited unless properly documented.

 

 

Attach paid invoices or receipts with cancelled checks for improvements.)

2. ____________

3.Settlement expenses.

a. Original purchase price (Attach settlement statement) . .

 

b. Pending sale (Attach preliminary closing disclosure) . . . .

 

 

Add lines 3a. and 3b. 3. ____________

4.

Add (Lines 1 through 3)

. . . . . . . . . . . . . . . . . 4.

____________

5.

Depreciation deducted for rental activity on federal return

. . . . . . . . . . . . . . . . . 5.

____________

6.

Subtract (Line 5 from Line 4). This is your adjusted basis

. . . . . . . . . . . . . . . . . 6.

____________

7.

Contract sales price. (Attach contract [1st page and signature pages] or preliminary

 

 

 

settlement statement.)

. . . . . . . . . . . . . . . . . 7.

____________

8a.

Subtract (Line 6 from Line 7). This is the amount subject to tax

. . . . . . . . . . . . . . . . 8a.

____________

8b.

Multiply Line 8a by ownership percentage (1.00, .50, .333, etc.)

. . . . . . . . . . . . . . . . 8b.

____________

9.Tax Rate. Check box for applicable tax rate. a. Individual 8.0% (.080)

b.

Business 8.25% (.0825)

 

10. Tentative withholding amount. Multiply line 8b by applicable tax rate.

 

 

If Line 8 is zero (0) or less than zero (0), enter zero (0)

10. ____________

NOTE: This amount will be recalculated by the Comptroller’s Office based on the actual documentation received and amounts

substantiated.

20-49

MARYLAND

Application for Certificate of Full or Partial Exemption

2021

 

 

 

FORM

 

 

page 2

MW506AE

 

 

 

 

 

Transferor/Seller’s Name______________________________________________________

Your Social Security Number/FEIN _____________________________

Special Situations

Check the box in the “Special Situations” column that applies to your situation, if any. If none apply, your exemption will be based only on the amount on the worksheet on page 1. See instructions for required documentation.

Principal Residence.

Transfer is pursuant to an installment sale under §453 of

 

the Internal Revenue Code.

 

 

Principal Residence – Active-duty Military, Certain

Transfer of inherited property is occurring within 6 months

Government Employees.

of date of death.

 

 

Tax-Free Exchange for purposes of §1031 of the Internal

Transferor/seller is the custodian of an individual retirement

Revenue Code.

account (IRA).

 

 

Transferor/seller is receiving zero proceeds from this

Transfer is pursuant to a specific Internal Revenue Code

transaction because proceeds are going to another seller/

section. See addendum.

owner (ex. cosignor).

 

Address of Settlement Agent to Mail Certificate if Issued (See instructions.)

Name of contact person and company

Street Address

 

City

State

ZIP code +4

 

 

 

 

 

Telephone number

Fax number

 

Email Address

 

Under the penalties of perjury, I declare that I have examined this application, including any schedules or statements attached, and to the best of my knowledge and belief, it is

true, correct and complete. If prepared by a person other than taxpayer, the declaration is based on all information of which the preparer has any knowledge.

Your signature

Date

Spouse’s signature

Date

Telephone number

 

Check here

if you authorize

 

us to contact you by email.

Email address

Preparer’s PTIN (required by law)

Signature of preparer other than taxpayer

Printed name of preparer

 

Address of preparer

 

Telephone number of preparer

 

20-49

MARYLAND

FORM

MW506AE

INSTRUCTIONS FOR APPLICATION FOR

2021

CERTIFICATE OF FULL OR PARTIAL EXEMPTION

The Comptroller’s decision to issue or deny a certificate and the amount of

tax is final and not subject to appeal.

GENERAL INSTRUCTIONS

Purpose of Form

Use Form MW506AE to apply for a Certificate of Full or Partial

Exemption from the withholding requirements on the proceeds of the sale of real property and associated personal property in

Maryland by nonresident individuals and nonresident entities. A nonresident entity is defined to mean an entity that: (1) is not formed under the laws of Maryland and (2) is not qualified by or

registered with the Department of Assessments and Taxation to do business in Maryland.

Who May File an Application

An individual, fiduciary, C corporation, S corporation, limited liability company, or partnership transferor/seller may file Form MW506AE. Unless the transferors/sellers are spouses filing a joint Maryland income tax return, a separate Form MW506AE is

required for each transferor/seller.

IMPORTANT: The completed Form MW506AE and all required documentation must be received by the Comptroller of Maryland

no later than 21 days before the closing date of the sale or transfer to ensure timely receipt of a Certificate of Full or

Partial Exemption. Applications with no closing date will not be processed.

The Comptroller’s decision to issue or deny a Certificate

of Full or Partial Exemption and the determination of the

amount of tax to be withheld if a partial exemption is granted are final and not subject to appeal.

SPECIFIC INSTRUCTIONS

Transferor/Seller’s Information

Enter the name, address and identification number (Social Security number or federal employer identification number)

of the transferor/seller applying for the exemption. If the

transferor/seller was issued an individual taxpayer identification number (ITIN) by the IRS, enter the ITIN.

Check the box indicating the transferor/seller’s entity type.

Enter the transferor/seller’s ownership percentage of the property. For example, if there are four equal owners, enter 25% for single application.

Property Information

Enter the description of the property, including the street address(es) for the property as listed with the State Department of Assessments and Taxation (SDAT), including county. If the property does not have a street address, provide the full property account ID numbers used by SDAT to identify the property.

Enter the date of closing for the sale or transfer of the property.

Application will not be processed if left blank.

Enter the property account ID number, if known. If the property is made up of more than one parcel and has more than one property tax account number, include all applicable property account ID numbers.

Check the box to indicate whether the property was used

for rental/commercial purposes. Maryland law requires that nonresidents owning real property in Maryland file a nonresident

income tax return reporting any rental income or loss. If you

checked the rental/commercial box and did not file returns

reporting this income or loss, your application will be denied.

File all appropriate returns before filing this application.

Relocating Sellers

If you are selling your house through a relocation company, please see the MW506AE – Relo Addendum for further instructions. You must complete the MW506AE – Relo Addendum and attach

it to your submission of the MW506AE.

Calculation of Tentative Exemption/Withholding Amount

Complete the calculation of tentative exemption section.

Line 1. Enter the purchase price of the property. This is the

contract amount for the original purchase. DO NOT include settlement costs or other adjustments in this

line. If inherited property, use the Date of Death value of the property. You must attach an original settlement statement, property tax printout (available at www.dat. state.md.us), original contract, date of death appraisal, or other proof of original purchase price or inherited value.

Line 2. Enter amount of capital improvements. This line is OPTIONAL. However, you must attach paid invoices or receipts with cancelled checks for improvements. Documentation must include proof of payment, address of property, and work completed.

Line 3. Settlement costs. You must attach a settlement statement for this amount. You may add both settlement costs for purchase and sale of the property if you have a settlement statement for each. If a

preliminary settlement statement is not available at time of filing, you must forward as soon as completed

in order to be credited for these costs. You may request this from the settlement agent.

Line 4. Add lines 1 through 3.

Line 5. Depreciation. Enter all depreciation already taken for this property, if rental or commercial, on any income tax return. You must attach a depreciation schedule or returns.

Line 6. Adjusted basis. Subtract line 5 from line 4. This is your adjusted basis.

Line 7. Contract Sales Price. Enter contract sales price. You must attach current contract (page 1 and signature pages only) or preliminary settlement statement.

Line 8a. Amount subject to tax. Subtract line 6 from line 7.

Line 8b. Multiply Line 8a by percentage of ownership.

Line 9. Tax Rate. Select which tax rate applies.

Line 10. Tentative Withholding Amount. Multiply line 8b by the tax rate. This is the tentative amount of withholding.

If zero or less than zero, enter zero. If zero, you may qualify for a full exemption (subject to verification).

Note: This amount will be calculated by the Comptroller’s Office based on actual documentation received.

Special Situations

Principal Residence.

Transfer is of your principal residence as defined in §121 of the

Internal Revenue Code, which means it has been your principal residence for two of the last five years. Resident income tax returns for that period must have been filed to claim principal residence. This will be verified by the Comptroller’s Office.

Principal Residence – Active-duty Military, Certain Government Employees.

Transfer is of your principal residence as defined in §121 of

the Internal Revenue Code, if you had a move necessitated by government orders or are stationed in Maryland. Attach transfer orders and proof of residency. This may include federal income tax return with Maryland address, utility bills, property tax statements, etc. See Internal Revenue Service Publication 523.

MARYLAND

FORM

MW506AE

INSTRUCTIONS FOR APPLICATION FOR

2021

CERTIFICATE OF FULL OR PARTIAL EXEMPTION

The Comptroller’s decision to issue or deny a certificate and the amount of

tax is final and not subject to appeal.

Tax-Free Exchange for purposes of §1031 of the Internal Revenue Code.

Required documentation in addition to that on page 1; letter signed by the qualified intermediary, or by the person authorized to sign on behalf of a business entity acting as the qualified

intermediary, which states the name(s) of the transferor(s),

the property description, that the individual or business will be acting as the qualified intermediary for the transferor(s) as part

of a §1031 exchange of the property, whether there will be any boot, and if so, the amount of boot. The amount of any boot must be stated on the application as the taxable amount.

Transferor/seller is receiving zero proceeds from this transaction.

Note: This situation applies when all proceeds go to another seller/co-owner. This does not apply if you receive ANY proceeds.

Required documentation in addition to that on page 1; copy of a letter from the transferor/seller to the title company advising they are to receive zero proceeds from the sale and advising to whom the proceeds are to go; a copy of the acknowledgment letter from the title company to the transferor/seller that all proceeds are to go to another seller/co-owner.

Transfer is pursuant to an installment sale under §453 of the Internal Revenue Code.

Required documentation in addition to that on page 1; copy of contract of sale or copy of settlement sheet from the title company; copy of promissory note to transferor which will be executed by transferee at settlement. That portion of the total payment that the transferor receives at or within sixty (60) days of settlement must be stated on the application as the taxable amount.

Transfer of inherited property is occurring within 6 months of date of death.

Required documentation in addition to that on page 1; provide a copy of the death certificate and a copy of the estimated

settlement sheet from the title company.

Transferor/seller is the custodian of an individual retirement account.

Required documentation in addition to that on page 1; provide a

copy of the preliminary settlement sheet from the title company, the custodian’s Certificate of Good Standing from its state of

incorporation, and a letter from the title company stating that all proceeds will be disbursed to the custodian.

Transfer is pursuant to a specific Internal Revenue Code section. See addendum.

Address to Mail Certificate if Issued

Provide the name and address of the title company or settlement agent to whom we should mail the exemption certificate if

issued. If you do not know the identity of the title company or settlement agent at the time you complete this form, you must email the name and address to nrshelp@marylandtaxes.gov as soon as possible. You must provide a mailing address to avoid delay in recording the sale.

Signature(s)

Form MW506AE must be signed by an individual (both taxpayer and spouse, if filing a joint Maryland income tax return), or a responsible corporate officer.

Include a daytime telephone number where you can be reached between 8:00 AM and 5:00 PM.

If you would like to be contacted by email in the event that more information is needed to process your application, include your

email address and check the box allowing us to contact you by email. The exemption certificate, if issued, will not be emailed

to you.

Your signature(s) signifies that your application, including all

attachments, is, to the best of your knowledge and belief, true, correct and complete, under penalties of perjury.

If a power of attorney is necessary, complete Maryland Form 548 and attach to your application.

Where to File

Mail the completed form and all attachments to:

Comptroller of Maryland

Revenue Administration Division

Attn: NRS Exemption Requests

P.O. Box 2031

Annapolis, MD 21404-2031

OR

Email the completed form and all attachments to nrshelp@ marylandtaxes.gov

Note: The email submission will not expedite the processing of your application. If you are emailing large attachments, send multiple smaller emails.

Submit your application via only one method.

Additional Information

For additional information visit www.marylandtaxes.gov, email nrshelp@marylandtaxes.gov or call 1-800-MDTAXES (1-800-638-2937) or 410-260-7980 in Central Maryland.

20-49

MARYLAND

 

 

 

2021

FORM

 

 

 

 

 

ADDENDUM FOR APPLICATION FOR

MW506AE

 

CERTIFICATE OF FULL OR PARTIAL EXEMPTION

 

 

 

 

 

Code Letter

IRC Section

Description

 

Required Documentation

 

 

 

 

a

§ 351

Transfer is to a corporation

Copy of the agreement of sale; Certificate of Good Standing of

 

 

controlled by the transferor

transferee issued by the state in which transferee is incorporated;

 

 

for purposes of § 351 of the

notarized affidavit executed on behalf of transferee by its President

 

 

Internal Revenue Code.

and its Treasurer stating that immediately after the exchange the

 

 

 

 

 

transferor(s) will own stock in the transferee possessing at least eighty

 

 

 

 

 

percent (80%) of the total combined voting power of all classes of

 

 

 

 

 

transferee’s stock entitled to vote and at least eighty percent (80%)

 

 

 

 

 

of the total number of shares of all other classes of stock of the

 

 

 

 

 

transferee; and an appraisal establishing the fair market value, at

 

 

 

 

 

the time of the exchange, of any property other than stock in the

 

 

 

 

 

transferee which is part of the consideration for the exchange. The

 

 

 

 

 

fair market value of any such other property and/or any money which

 

 

 

 

 

is part of the consideration for the exchange must be stated on the

 

 

 

 

 

application as the taxable amount.

 

 

 

 

 

 

b

§ 361

Transfer

is

pursuant to a

Copy of agreement governing the transfer between transferor and

 

 

tax-free reorganization as

transferee; Certificates of Good Standing of transferor and transferee

 

 

described in § 361 of the

issued by the state(s) in which transferor and transferee are

 

 

Internal Revenue Code.

incorporated; copy of the plan or reorganization showing that transferor

 

 

 

 

 

and transferee are parties to the reorganization; and an appraisal

 

 

 

 

 

establishing the fair market value, at the time of the exchange, of any

 

 

 

 

 

property other than stock or securities in the transferee which is part

 

 

 

 

 

of the consideration for the exchange and will not be distributed by the

 

 

 

 

 

transferor in pursuance of the plan of reorganization. The fair market

 

 

 

 

 

value of any such other property and/or any money which is part of

 

 

 

 

 

the consideration for the exchange must be stated on the application

 

 

 

 

 

as the taxable amount.

 

 

 

 

c

§ 501(a)

Transfer is by a tax-exempt

Copy of determination by the Internal Revenue Service that transferor

 

 

entity for purposes of § 501(a)

is a tax-exempt entity for purpose of § 501(a) of the Internal Revenue

 

 

of the Internal Revenue Code

Code; Certificate of Good Standing of transferor issued by the state

 

 

and transfer involves limited or

in which transferor is incorporated; notarized affidavit executed on

 

 

no unrelated business taxable

behalf of transferor by its President and by its Treasurer stating that

 

 

income under § 512 of the

the transfer involves limited or no unrelated business income under §

 

 

Internal Revenue Code.

512 of the Internal Revenue Code.

 

 

 

 

d

§ 721

Transfer is to a partnership in

Copy of agreement governing transfer between transferor and

 

 

exchange for an interest in the

transferee; copy of the partnership agreement of the transferee.

 

 

partnership such that no gain

 

 

 

or loss is recognized under §

 

 

 

721 of the Internal Revenue

 

 

 

Code.

 

 

 

 

 

 

 

e

§ 731

Transfer is by a partnership to

Copy of agreement governing transfer between transferor and

 

 

a partner of the partnership in

transferee; copy of the partnership agreement of the transferor.

 

 

accordance with § 731 of the

 

 

 

Internal Revenue Code.

 

 

 

 

 

f

§ 857

Transfer is treated as a transfer

Copy of agreement governing transfer between transferor and

 

 

by a real estate investment

transferee; certified copy of Articles of Incorporation of transferor;

 

 

trust for purposes of § 857 of

Certificate of Good Standing of transferor issued by the state in which

 

 

the Internal Revenue Code.

transferor is incorporated.

 

 

 

 

g

§ 1033

Transfer is pursuant to a

Copy of agreement governing transfer between transferor and

 

 

condemnation and conversion

government body or authority condemning the property; notarized

 

 

into a similar property for

affidavit executed by transferor stating that transferor will identify

 

 

purposes of § 1033 of the

and purchase replacement property within the time limits required

 

 

Internal Revenue Code.

by § 1033 of the Internal Revenue Code, or copy of contract of sale

 

 

 

 

 

if transferor has already identified replacement property. If proceeds

 

 

 

 

 

from condemnation exceed price of replacement property, the excess

 

 

 

 

 

must be stated on the application as the taxable amount.

 

 

 

 

 

 

h

§ 1041

Transfer

is

between spouses

Copy of marriage license or divorce decree; copy of deed which will

 

 

or incident to divorce for

be recorded to accomplish the transfer; if incident to divorce, copy of

 

 

purposes of § 1041 of the

section of court order or separation agreement governing transfer of

 

 

Internal Revenue Code.

the property.

 

 

 

 

i

§ 1368

Transfer is treated as a

Copy of agreement governing transfer between transferor and

 

 

transfer by an S corporation

transferee; copy of approval by the Internal Revenue Service of

 

 

for purposes of § 1368 of the

transferor’s S-corporation election; Certificate of Good Standing of

 

 

Internal Revenue Code.

transferor issued by the state in which transferor is incorporated.

 

 

 

 

 

 

20-49

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