MD: Increased Withholding Tax for Sales of Real Property by Nonresidents
By: Myles, December 28th, 2007
In the 2007 Special Session, the Maryland General Assembly enacted the Tax Reform Act of 2007 which resulted in changes in the income tax law that provides for withholding requirements on the sale or transfer of real property by a nonresident individual or a nonresident entity. The changes go into effect January 1, 2008.
Sale or Transfer of Real Property and Associated Personal Property by a Nonresident Individual or a Nonresident Entity:
- For tax years beginning after December 31, 2007
- The tax rates that apply to withholding on a sale or transfer of real property and associated personal property will be 6.75 % for a nonresident individual and 8.25 % for a nonresident entity.
- For more details on these changes, and for updated 2008 forms that include these changes, visit the Comptroller’s Web site — www.marylandtaxes.com– or contact Myles Lichtenberg at Myles@MylesTitle.com or at 410.458.8975.
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