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

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
327,562
Melissa McKinney
McKinney Realty Group - Fayetteville, NC
Realtor, www.LivingFayetteville.com

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

Oct 26, 2010 10:49 PM #1
Post a Comment
Spam prevention
Show All Comments
Rainmaker
430,238

Diane M. Phillips Realtor 443-286-4365

Specializing in Carroll Co., MD
I love answering real estate questions. Ask me anything!
*
*
*
*
Spam prevention

Additional Information