Yes, you will need to file a non-resident return in the State of Maryland. The income from the sale was earned on property located within the state and Maryland requires that a return must to be filed with the state.
When filing the Maryland return you should include in your state withholding the tax paid on behalf of the nonresident transferor that was reported on Form MW506NRS. MD Withholding Requirements (page 3)
On your Virginia return you could be able to subtract from your Virginia Taxable Income the amount of Long-Term Capital Gains.on the sale of the property. Virginia Income Subtractions
If you are unable to subtract the income on the sale you will be able to get a credit for the income taxes you paid to Maryland. Credit For Taxes Paid To Another State
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
