Primary residence becomes a Rental - State tax requirements

jxavierf12
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My employer temporarily moved me from Baltimore, MD to Charleston, SC in Nov. 2010....which was suppose to be temporary and for less than a year, but I am still in SC and may even stay. In January 2011, I began renting my property in Baltimore and have rented it for the whole year of 2011. Does this mean that I am no longer a resident of Maryland; therefore, should'nt pay Maryland state taxes for the year of 2011? thanks!

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January 29 - Baltimore

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Answers (2)

Steve Withrow, "SteveMDDCVA"
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I can tell you in my experience that the state of Maryland does not consider you a Maryland resident as pertains to your tax situation regarding your home. Meaning, if you were to sell your home today you would be subject to MD's withholding rules regarding the sale of MD properties owned by non-Maryland residents.

As far as income tax, thats outside of what I can advise you on. I recommend talking to a good accountant. If you'd like me to refer you one I'd be happy to...

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January 30

Gary Addington, "GaryAddington"
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Check with your accountant on taxes, but I think once you change your residence to South Carolina, you are at that point, no longer a Maryland resident..unless you claim otherwise....i.e....license, tags, etc.... You will not be able to avoid paying Maryland taxes once you sell either, since Maryland will collect their cut at the settlement table if you are an out of state resident.