On Mar. 28, MA LEG proposed rule on real estate sale withholding.
MA LEG proposed regulation relating to the withholding on sales of real estate.
Amends MA LEG 830-62B.00 by adding section 62B.2.4 on real estate sale withholding
Proposed Amendments
Establishes withholding requirements that apply to proceeds of sales or transfers of MA real estate, requirements intended to facilitate the collection of personal income tax.
Requirements apply when transferor is nonresident and gross sales price is over $1mn.
Transfer subject to withholding if real estate is located in whole or part in Massachusetts, withholding agent is required to collect and remit withholding amounts.
If transferor owns real estate with one or more transferors, withholding treatment of each transferor is determined separately, threshold determined on entire transaction.
Exemptions for full-year residents, pass-through entities, publicly traded partnerships, resident trust or estate, MA corporations, non-profits, financial institutions, REITs.
Other exemptions so withholding requirements include payment of debts, foreclosures, involuntary transfers, properties only partly located in MA, nonrecognition provisions.
Consultation
Hearing scheduled for 11am on Apr. 29, 2025; written testimony due 5pm on Apr. 29.
Effectiveness
Provisions effective for real estate closings that occur on or after Jun. 1, 2025.
