Non resident paying MD tax on sale of rental

[jzellman]

GM

PA client sold a rental property in MD and MD wittheld 

[Just-Lisa-Now-]

You may want to rephrase this in the form of a question....where are you having trouble?

[dascpa]

Guessing at your question, yes, if you are a nonresident of Maryland and you sell real estate, Maryland with withhold at time of sale state income tax on the gross amount of sale.  This is done in this and many other states to force you to file a state income tax return.  Since it's withheld based on the selling price upon filing the taxpayer will be due a refund since cost basis is not taken into account.

[Skylane]

Agree with @dascpa but different states have different rules… in NJ you compete and submit a form at time of closing disclosing basis, depreciation, CG etc. you can get pretty close to the tax (if any) and that forms the basis for withholding…. I’ve been asked to complete one numerous times.. of, course some RE attorneys short cut and just enter the sales price… Either way a NJ non res return has to be filed.No idea how it is done in MD

[jzellman]

Sorry where on the MD return do I enter the tax paid

TY

[ljr]

from the federal return go to tax payments (same place you enter estimated tax payments made)