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We recently had a client come in whose surviving parent passed away. Our client, as Executor of the Estate, is in the process of selling the residential home. Another client came in a few days later, because she and her husband are moving out of the area.
What many people are not aware of, is a withholding tax on the proceeds of the sale of real property or associated personal property in Maryland by non-resident individuals and non-resident entities.
You may qualify for full or partial exemption from this tax, but you have to file the appropriate form. Form MD506AE permits exemptions for the following “special situations”:
Unless the transferors, or sellers, are spouses filing a joint Maryland income tax return, a separate Form MW505AE is required for each person.
Make sure you file yours! The form must be received no later than 21 days before closing date.
Download the form here: https://forms.marylandtaxes.com/15_forms/MW506AE.pdf