Maryland Non-Resident Seller Transfer Withholding Tax

By
Real Estate Agent with Frankly Real Estate Inc.

TaxesMaryland Non-Resident Seller Transfer Withholding Tax

Maryland Non-Resident Seller Transfer Withholding Tax is very confusing, Realtors, title companies & accountants all with different perspectives. The clear part of the picture, Maryland Non-Resident sellers are taxed at 7.5% of the total proceeds, after mortgage pay-off and settlement costs. (8.25% if they are a non-resident entity).

What if you moved within the last year to year and a half? What’s the defining moment? Well, at settlement you’ll be asked for your driver’s license for ID purposes, that’s standard operating procedure at settlement. Secondly, what does the state department of assessments have on file? Does it list the property as your primary residence? If not, you will be paying the tax or at least, it will be held in escrow until all the wrinkles are worked out. Apparently, if it was your primary residence for at least 3 of the last 5 years, then you may be exempt.

I am not an accountant or an attorney, I am, however, confused....or maybe not?

On $100,000 proceeds that $7,500 all because I moved out of state for work, retirement or just because? Holy Cow!

See Comptroller of Maryland website.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Maryland
Groups:
Addicted to Active Rain
Dedicated Bloggers
Diary of a Realtor
Psych Ward
"Whacked"!!!
Tags:
maryland nonresident seller transfer tax

Comments 1 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Ambassador
324,264
Melissa McKinney
Realtor, www.LivingFayetteville.com
McKinney Realty Group

Diane~ Tax stuff can be so daunting... Good info!

October 26, 2010 10:49 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
386,343

Diane M. Phillips

Realtor 443-286-4365
I love answering real estate questions. Ask me anything!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

" style="overflow:hidden;" seamless scrolling="no" id="custom-widget-content" onload="resizeIframe()">Your browser does not support iframe.