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Buyers & Sellers Articles Blog Maryland non-resident seller Withholding Tax: Update
Buyers & Sellers Articles Blog Maryland non-resident seller Withholding Tax: Update
Effective January 1, 2011, the rate of withholding taxes to be withheld and paid to the Clerk of the Court on the sale of real estate by non-residents in the state of Maryland has been lowered from 7.5% to 6.75%. The rate of withholding for non-Maryland entities has remained unchanged at 8.25%.
Maryland residents and Maryland entities (entities formed in Maryland and/or which have qualified or registered to do business in Maryland) are exempt from the withholding requirement.
Also exempt from the withholding requirement are non-resident sellers who used the property as their principal residence as defined in IRC 121 and had the property recorded as such with the State Department of Assessments and Taxation.
Here is a detailed guide on the Maryland non-resident seller withholding tax.
| 02 February 2011
Believe it or not, sometimes tax rates actually go down!Effective January 1, 2011, the rate of withholding taxes to be withheld and paid to the Clerk of the Court on the sale of real estate by non-residents in the state of Maryland has been lowered from 7.5% to 6.75%. The rate of withholding for non-Maryland entities has remained unchanged at 8.25%.
Maryland residents and Maryland entities (entities formed in Maryland and/or which have qualified or registered to do business in Maryland) are exempt from the withholding requirement.
Also exempt from the withholding requirement are non-resident sellers who used the property as their principal residence as defined in IRC 121 and had the property recorded as such with the State Department of Assessments and Taxation.
Here is a detailed guide on the Maryland non-resident seller withholding tax.
