Form Mw506Nrs – Fill Out and Use This PDF

The Form MW506NRS is crucial for nonresident individuals and entities selling real property located in Maryland, as it facilitates the collection of state income tax at the time of sale. It computes and withholds the required tax from the proceeds of the sale, ensuring compliance with Maryland tax laws. Filing this form with the necessary documentation at the Clerk of the Circuit Court is a required step for all nonresident sellers, unless the sale is exempt from taxation.

For those navigating through the sale of property in Maryland as a nonresident, understanding and completing the MW506NRS form is indispensable. Ensure your transaction complies with Maryland tax laws by filling out the form thoroughly and accurately. Click the button below to start the process.

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Form Mw506Nrs PDF Details

The Form MW506NRS serves as a critical instrument for managing income tax withholding on the sale or transfer of real estate by nonresident individuals or entities within Maryland. Its design targets the effective collection of taxes due from nonresident sellers to ensure compliance and fiscal responsibility during such transactions. The form is meticulously detailed, requiring information such as the description and address of the transferred property, the identification numbers of transferors or sellers, the date of transfer, and a comprehensive computation of the total payment and the tax to be withheld. Notably, it caters to various seller types, including individuals, estates, trusts, partnerships, corporations, S corporations, business trusts, and limited liability companies. Moreover, for transactions employing the installment method, the form incorporates a provision for reporting gain accordingly. The necessity for separate forms for each nonresident transferor or entity, except in cases where spouses file a joint return, underscores the form’s comprehensive approach to tax collection. Furthermore, it embodies instructions for both the computation of the tax to be withheld and the procedure for its remittance, enhancing its utility as a tool for ensuring that nonresident real property transactions are conducted in accordance with Maryland's tax laws. Additionally, its structure facilitates the correct filing and remittance process by specifying the submission of different copies of the form to relevant parties, thus playing a pivotal role in the state’s strategy to secure income tax from nonresident real property sales.

Question	Answer
Form Name	Form Mw506Nrs
Form Length	4 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	1 min
Other names	recordation, LinegbyLineh, SSN, FEIN

Form Preview Example

Form	Maryland Return of Income Tax Withholding	2022
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 identification no.	5. Spouse’s SSN
	(SSN or FEIN) (Enter only one number)

6.Transferor/Seller’s name (Enter only one name, unless spouses are filing 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 - 8.0%

i.Maryland Income Tax withheld (Multiply

Line g by Line h) (If certificate 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	Preparer’s Name_ __________________________________________

	declaration is based on all information to which the preparer has any knowledge.
		Preparer’s Phone Number_ ___________________________________

Signature		Date
COM/RAD-308	01/22	Copy A - For Comptroller of Maryland, Revenue Administration Division. (File with Clerk of the Circuit 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.

Who must file 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 file Form MW506NRS with the deed or other instrument of transfer that will be filed 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 filing a joint Maryland income tax return.

A “nonresident entity” is defined 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 qualified 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 file 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 file

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

Specific 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 defined 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	filing 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 identification 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 identification number on Copy B of Form MW506NRS.) Enter the name (or names, if spouses are filing 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 Certificate 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 filed.

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 verified and signed by the individual transferor/seller, an authorized person or officer of a business entity or the person responsible for closing.

COM/RAD-308 01/22

Form	Maryland Return of Income Tax Withholding	2022
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 identification no.	5. Spouse’s SSN
	(SSN or FEIN) (Enter only one number)

6.Transferor/Seller’s name (Enter only one name, unless spouses are filing 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

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 certificate of partial exemption granted, enter amount from

Line 3 of the Form MW506E)

COM/RAD-308

01/22

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

What to file

A copy of each Copy A will be filed with Form MW508NRS on or before the 21st day of the month following the month in which the Form MW506NRS is filed 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.

COM/RAD-308 01/22

Form	Maryland Return of Income Tax Withholding	2022
MW506NRS	for Nonresident Sale of Real Property

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 identification no.	5. Spouse’s SSN
	(SSN or FEIN) (Enter only one number)

6.Transferor/Seller’s name (Enter only one name, unless spouses are filing 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

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 certificate of partial exemption granted, enter amount from

Line 3 of the Form MW506E)

COM/RAD-308 01/22

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

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

Who must file

A nonresident individual or nonresident entity that sells real property located in Maryland must file a Maryland income tax return. The appropriate income tax return must be filed 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 specific income tax return.

What to file

The nonresident individual or nonresident entity must file 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 filed with the Comptroller of Maryland. See the specific instructions for the tax return being filed.

Specific 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 file. Follow the specific 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 file 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 file 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 file 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 modified 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 file 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.

COM/RAD-308 01/22

Form	Maryland Return of Income Tax Withholding	2022
MW506NRS	for Nonresident Sale of Real Property

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 identification no.	5. Spouse’s SSN
	(SSN or FEIN) (Enter only one number)

6.Transferor/Seller’s name (Enter only one name, unless spouses are filing 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

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 certificate of partial exemption granted, enter amount from

Line 3 of the Form MW506E)

COM/RAD-308 01/22

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

Who must file 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 file Form MW506NRS with the deed or other instrument of transfer that will be filed 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 filing a joint Maryland income tax return.

When to file 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 file

Copies A and B of each Form MW506NRS must

be filed 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.

Specific 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 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 filing 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 identification 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 identification number on Copy B of Form MW506NRS.) Enter the name (or names, if spouses filing 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 Certificate 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 filed.

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.

COM/RAD-308 01/22

How to Edit Form Mw506Nrs Online for Free

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Step 1: The following web page includes an orange button that says "Get Form Now". Click it.

Step 2: You're now on the form editing page. You may edit, add content, highlight selected words or phrases, put crosses or checks, and include images.

The next parts are what you will need to fill in to receive the ready PDF form.

Provide the requested data in the INSTRUCTIONS FOR RETURN OF INCOME, THERE ARE FOUR COPIES OF FORM, What to file Copies A and B of, for the, Check the appropriate box, Do not enter the street address of, and Line g Multiply line e by line f field.

You may be asked for particular crucial information to prepare the ID number, Description and address of, Check box if the transferor, Date of transfer, TransferorSeller is, An IndividualEstateTrust, A Partnership, A Corporation, An S Corporation, A Business Trust, A Limited Liability Company, F O K R E L C E H T H T I W E L I, seller is reporting gain under the, TransferorSellers identification, and Spouses SSN section.

recordation ID number, Description and address of, Check box if the transferor, Date of transfer, TransferorSeller is, An IndividualEstateTrust, A Partnership, A Corporation, An S Corporation, A Business Trust, A Limited Liability Company, F O K R E L C E H T H T I W E L I, seller is reporting gain under the, TransferorSellers identification, and Spouses SSN blanks to fill out

The Description and address of, TransferorSeller is, ID number, An IndividualEstateTrust, A Partnership, A Corporation, An S Corporation, A Business Trust, A Limited Liability Company, Date of transfer, Check box if the transferor, seller is reporting gain under the, TransferorSellers identification, Spouses SSN, and SSN or FEIN Enter only one number area is where both parties can indicate their rights and obligations.

Check the sections Description and address of, TransferorSeller is, ID number, An IndividualEstateTrust, A Partnership, A Corporation, An S Corporation, A Business Trust, A Limited Liability Company, Date of transfer, Check box if the transferor, seller is reporting gain under the, TransferorSellers identification, Spouses SSN, and SSN or FEIN Enter only one number and next complete them.

Step 3: Once you click the Done button, the finished document is easily exportable to any of your devices. Or, you can easily send it using email.

Step 4: Be sure to make as many duplicates of the document as you can to remain away from possible complications.

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