Did you know that Maryland increased the income tax withholding on the sale of real property for non-residents?
February 5, 2016
Maryland collects an income tax withholding payment on all real property transactions involving a non-resident individual or non-resident entity. The amount withheld from an individual is 7.5% of the payment to that individual. This is an increase in the withholding payment over the previous year, which was 7%. The withholding payment for non-resident entities remains the same at 8.5% of the payment to the entity.
A person will be considered a resident if he or she is domiciled in the state on the last day of the taxable year or, if for more than 6 months of the taxable year, he or she maintained a place of abode in the state whether domiciled in the state or not. An entity will be considered a resident entity if it is formed under the laws of the state for more than 90 days prior to the date of sale of the property or, if formed under the laws of another state, it is qualified by or registered with the Department of Assessments and Taxation to do business in Maryland for more than 90 days prior to the date of sale of the property.
For more information about the Maryland income tax withholding payment see here or call one of the attorneys listed below.
For more information regarding our Residential Real Estate Settlements Group or our general real estate transactions and litigation practice, please contact the Group Chair at 301-230-6574 or firstname.lastname@example.org.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.