By: Mike Kennedy|
June 1st, 2012
Category: Deep Creek Lake Real Estate, Garrett County Real Estate
Effective June 1st the withholding rate for non-Maryland residents who sell property in the state of Maryland is increasing 0.25% to 7.00%. This withholding does not apply to Maryland residents.
Garrett County has numerous property owners who aren’t full time residents of Maryland that own vacation homes and real estate on or around Deep Creek Lake. Some owners are full time residents from northern Virginia, Washington D.C, and Pennsylvania that will be affected by this law change.
It’s important to note this is not a new tax. It’s simply a withholding. The withholding is calculated as follows at settlement;
The net amount of the purchase price of the house being sold less closing costs less any mortgage balance x 7%.
The closing attorney will withhold this amount at closing for any non-resident seller. It’s then up to the seller to file a Maryland Income tax return to determine whether more is owed for Maryland capital gains tax or if the seller is owed some type of refund.
Give us a call if you are thinking about selling your Deep Creek Lake or Garrett County property. As the area’s largest real estate company we can help you with all your selling needs.