Randall Posted April 19, 2013 Report Share Posted April 19, 2013 Anyone familiar with Maryland real estate sales withholding tax? Client is a nonresident of MD, inherited property in MD, tax basis $850,000. Ready to close on sale for about $917,000. They are going to withhold 7.5% of sales price, about $69,000. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted April 19, 2013 Report Share Posted April 19, 2013 Randall: That is what they do. Then you file the form MD505 and claim the refund for the taxes paid, less the amount that was due. They should only withhold 2.5% of the sales price also. If the inheritated property was recently, sometimes the attorneys will let you withhold less. But the law in the peoples state of MD is pretty clear. Mo' money Rich Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted April 19, 2013 Report Share Posted April 19, 2013 States have this withholding tax to force nonresidents to file the appropriate income tax returns. Your client can file the MD State tax return and report the sale of the real estate and depending on the gain or loss request a refund.. Quote Link to comment Share on other sites More sharing options...
Randall Posted April 19, 2013 Author Report Share Posted April 19, 2013 Richcpaman, where are you getting the 2.5%? My client is saying they are going to withhold 7.5%. Quote Link to comment Share on other sites More sharing options...
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