Rad-308 Details

Are you aware of the Form Mw506Nrs? If not, you should be. This form is vitally important for any business that wants to take advantage of tax deductions and credits available for research and development expenses. Recently, the IRS released a new revision of the form, and it's more important than ever to make sure your business is using the most up-to-date version. In this blog post, we'll provide an overview of what the Form Mw506Nrs is and how it can benefit your business. We'll also discuss some key changes made to the form with the latest revision.

This table offers information regarding form mw506nrs. You'll have the expected time it may take you to fill in the form and some other details.

QuestionAnswer
Form NameForm Mw506Nrs
Form Length4 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min
Other namesSDAT, mw506fr 2019, LinegbyLineh, mw506fr

Form Preview Example

Form

Maryland Return of Income Tax Withholding

2012

MW506NRS

for Nonresident Sale of Real Property

 

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 identiication no.

5. Spouse’s SSN

 

(SSN or FEIN) (Enter only one number)

 

 

 

 

 

 

 

 

6.Transferor/Seller’s name (Enter only one name, unless husband and wife iling 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

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 - 7% }____________

i.Maryland Income Tax withheld (Multiply

Line g by Line h) (If certiicate of partial

exemption granted, enter amount from

 

Line 3 of the Form MW506E)

$

• ATTACH

Under penalties of perjury, I declare that I have examined this return and to the best of my knowledge

Preparer’s Name __________________________________________

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 Phone Number ___________________________________

Signature

Date

 

Copy A - For Comptroller of Maryland, Revenue Administration Division. (File with Clerk of the Circuit Court)

COM/RAD-308 (Rev. 06/12)

11-49

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 ile 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 ile Form MW506NRS

with the deed or other instrument of transfer that will be iled 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 a husband and wife iling a joint Maryland income tax return.

A “nonresident entity” is deined 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 qualiied 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 ile 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 ile

Copies A and B of each Form MW506NRS must be iled 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.

Speciic 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 deined 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 husband and wife and iling 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 identiication 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 identiication number on Copy

B of Form MW506NRS.) Enter the name (or names, if husband and wife iling 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 Certiicate 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 iled.

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 veriied and signed

by the individual transferor/seller, an authorized person or oficer of a business entity or the person

responsible for closing.

(Rev. 06-12)

Form

Maryland Return of Income Tax Withholding

2012

MW506NRS

for Nonresident Sale of Real Property

 

• 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 identiication no.

5. Spouse’s SSN

 

(SSN or FEIN) (Enter only one number)

 

 

 

 

 

 

 

 

6.Transferor/Seller’s name (Enter only one name, unless husband and wife iling 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

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 - 7% }____________

i.Maryland Income Tax withheld (Multiply

Line g by Line h) (If certiicate of partial

exemption granted, enter amount from

 

Line 3 of the Form MW506E)

$

COM/RAD-308 (Rev. 06/12)

11-49

Copy B - For Clerk of the Court

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.

What to ile

A copy of each Copy A will be iled with Form

MW508NRS on or before the 21st day of the

month following the month in which the Form

MW506NRS is iled 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.

(Rev. 06-12)

Form

Maryland Return of Income Tax Withholding

2012

MW506NRS

for Nonresident Sale of Real Property

 

• 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 identiication no.

5. Spouse’s SSN

 

(SSN or FEIN) (Enter only one number)

 

 

 

 

 

 

 

 

6.Transferor/Seller’s name (Enter only one name, unless husband and wife iling 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

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 - 7% }____________

i.Maryland Income Tax withheld (Multiply

Line g by Line h) (If certiicate of partial

exemption granted, enter amount from

 

Line 3 of the Form MW506E)

$

COM/RAD-308 (Rev. 06/12)

11-49

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

INSTRUCTIONS11-49FOR 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 ile

A nonresident individual or nonresident entity

that sells real property located in Maryland must ile a Maryland income tax return. The appropriate income tax return must be iled

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 speciic income tax return.

What to ile

The nonresident individual or nonresident entity must ile 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 iled with the Comptroller of Maryland. See the speciic instructions for the tax return being iled.

Speciic 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 ile. Follow the speciic 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 ile 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 ile 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 ile

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 modiied 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 ile 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.

(Rev. 06-12)

Form

Maryland Return of Income Tax Withholding

2012

MW506NRS

for Nonresident Sale of Real Property

 

• 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 identiication no.

5. Spouse’s SSN

 

(SSN or FEIN) (Enter only one number)

 

 

 

 

 

 

 

 

6.Transferor/Seller’s name (Enter only one name, unless husband and wife iling 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

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 - 7% }____________

i.Maryland Income Tax withheld (Multiply

Line g by Line h) (If certiicate of partial

exemption granted, enter amount from

 

Line 3 of the Form MW506E)

$

Copy D - For Issuer

COM/RAD-308 (Rev. 06/12)

11-49

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 ile 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 ile Form

MW506NRS with the deed or other instrument of transfer that will be iled 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 a husband and wife iling a joint Maryland income tax return.

When to ile 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 ile

Copies A and B of each Form MW506NRS must

be iled 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.

Speciic 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 deined 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 husband and wife and iling 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 identiication 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 identiication number on Copy B of Form

MW506NRS.) Enter the name (or names, if husband and wife iling 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 Certiicate 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 iled.

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.

(Rev. 06-12)

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