The Massachusetts Department of Revenue (DOR) has developed an FAQ page that provides information on proposed withholding rules on sales or exchanges of real estate on a nonresident seller’s capital gain from the sale (or exchange) of Massachusetts real property when the gross sale price is $1,000,000 or more.
The proposed withholding rules on sales or exchanges of real estate generally require a withholding agent to withhold personal income tax or corporate excise, as applicable, on a nonresident seller’s capital gain from the sale or exchange of Massachusetts real property when the gross sales price is $1,000,000 or more. Nonresident sellers include individuals and business corporations with no continuing Massachusetts business presence. DOR has issued a working draft regulation, 830 CMR 62B.2.4, that explains the withholding requirements in detail. Find out more here.