WV has a reciprocal agreement with MD. Investment house sale

[Pacun]

Do you know if a MD resident has to pay WV taxes when selling a WV investment house?  I am going to file a non-resident return and I wonder if client will get full refund. 

Also, I believe I will have to paper file since the document I have for the withholding looks like a sheet vs a form. 

[Lion EA]

You'll want to wait for someone who works with MD/WV, but I do know that most reciprocity agreements are for wages only. So, do some research on the WV website while you wait. Good luck.

[jklcpa]

1 hour ago, Pacun said:

Do you know if a MD resident has to pay WV taxes when selling a WV investment house?  I am going to file a non-resident return and I wonder if client will get full refund. 

No reciprocal agreement for nonresidents selling WV property. Taxpayer will need to file a WV nonresident return that will include the cap gain on the sale of the property and will calculate the total WV tax. Then the tax withheld on the sale will be applied against that.

Here is the WV code sec: https://code.wvlegislature.gov/11-11-5/

Seller or settlement agent should have filled out WV form NRSR at the time of sale which calculates the tax to be withheld from sale proceeds. This form must be attached to the WV nonres income tax form. You should check the WV IT-140 instructions as to whether paper filing is necessary, but it may be possible to attach the form as a pdf attachment.  https://tax.wv.gov/Documents/Withholding/nrsr.pdf

The withholding at sale is claimed on the WV nonresident income tax form. It should be entered on WV IT-140, line 15.  Your client will receive credit for that withholding against their total tax, and they may owe some if the withholding wasn't enough to cover what they owe, or they will get a refund if the withholding exceeds their WV total tax before payments and credits.  You should read the instructions to line 15 to make sure the appropriate federal forms go with the WV filing. This link contains the IT-140 and its instructions.  https://tax.wv.gov/Documents/PIT/2024/it140.2024.pdf