Delaware Contractors - Deductions for Amounts Paid to Subcontractors

Contractors - Deductions for Amounts Paid to Subcontractors
Form 1280-DEV - Deductions for Amounts Paid to Subcontractors
STATE OF DELAWARE
DEDUCTIONS FOR AMOUNTS PAID TO SUBCONTRACTORS
Department of Finance
BY CONTRACTORS AND DEDUCTIONS
Division of Revenue
FOR DEVELOPMENT OF REALTY
820 N. French Street
P.O. Box 2340
FORM 1280-DEV
Wilmington, Delaware 19899-2340	

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THIS FORM IS TO BE USED BY BUSINESS CODES 332 AND 336 ONLY AND MUST BE ATTACHED
 

TO CONTRACTORS/DEVELOPERS GROSS RECEIPT TAX COUPON TO SUBSTANTIATE PAYMENTS
 

TO SUBCONTRACTORS AND DEDUCTIONS FOR DEVELOPMENT OF REALTY
 

1.

Enter Federal Employee Identification Number

1­

-

2.

Name

3.

Address

5.	

Social Security Number

2­

City

4.

OR

-

-

State

Zip Code

General Contractors Total Monthly Gross Receipts: Month/Year
(Enter on Line 1 of Gross Receipts Coupon, including proceeds from development activities)

$

PART A: Less Payments to Subcontractors:
Name &. Address

1

2

3

4


Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

(See Reverse Side for Additional Space)


TOTAL PART A. (Attach separate schedule if additional space is needed)
 

TOTAL PART B. Realty Development Expenses
 

(From Line 10 on Back of Form)
TOTAL PART C. Miscellaneous Expenses
(From Line 11 on Back of Form)
TOTAL PART D. Election to Deduct 30% of Gross Receipts from Sale of Property
(From Line 12 on Back of Form)
6.	 Total Payments to Subcontractors & Development Expenses:
Add Parts A & B & C OR A & D and enter on Line 2 of Gross Receipts Coupon

$

7.	 Total Taxable Gross Receipts for the Month:
Subtract Line 6 from Line 4 and enter on Line 3 of Gross Receipts Coupon

$

I declare under penalties as provided by law that the information on this form is true, correct and complete.

SIGNATURE	

TITLE

DATE

Contracts have been awarded to the following nonresident contractors and nonresident subcontractors:
Name & Address

5

6

7

8

9

10

11

12

13

14

15

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

Employer ID No.

DE Business License No.

Amount of Payment

Business Code

COMPUTATION OF DEVELOPMENT EXPENSES	

Contractor Name

TPID

Page 3

Tax Period

(The information requested below is required for each development from which a lot was sold during the reporting period.)

Name of Development
Development Address

(1.) Number of Properties/Lots sold this period.
(2.) Number of Properties/Lots within this development.
(3.) Percentage of Properties/Lots sold this period.
[Divide Line (1.) by Line (2.)]
 

(4.) Total Number of Properties/Lots sold to date
 

PART B:	 	

Total Cost of Realty Development Expenses

a.	 Cost of Raw land
b.	 Site Improvement
 

(Clearing. grading, streets, water. power &. other utilities)
 

c.	 Engineering Costs
 

(Rezoning &. subdivision costs only)
 

d.	 Legal Fees
 

(Rezoning &. subdivision costs only)
 

e.	 Interest cost associated with acquisition &. development of the site
 

regardless of whether interest has been expended or capitalized for
 

federal income tax purposes. (Allocated on a per lot basis.)
 

f.	 Decorating & space planning costs associated with model home(s).
8.

Total (Part B) (Add lines a. - f. and enter here.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

Enter the percentage from Line (3.) above.

10.

Total. (Multiply Line 8. by Line 9. and enter here and on Line 5, Part B.) . . . . . . . . . . . . .

PART C:	 	

Miscellaneous Expenses Attributable to Lots Sold this Tax Period.

a.	 Developers share of Realty Transfer Tax
b.	 Real estate fees/commissions (Maximum 2% of gross proceeds)
c.	 Sales concessions to buyers deducted from sellers funds at settlement.
 

(Points, settlement help, etc.)
 

d.	 Other costs associated with the Lots sold this tax period
 

(other than general administrative &. overhead). Attach a statement
 

identifying such costs.
 

11.

Total (Part C) (Add lines a. - d. and enter here and on Line 5, Part C.). . . . . . . . . . . . . . .

PART D:	 	

Election to Deduct 30% of Gross Receipts from the Sale of Property. An election to use the standard 30%
deduction is irrevocable for a period of one year from the date of such election.

a.	 Gross receipts from sale of property for this tax period.
b.	 Standard 30% deduction. 	
12.

x

30%

Total (Part D) (Multiply Line a. by Line b. (30%) and enter here and on Line 5, Part D.). . . .

NOTE: PAYMENTS DEDUCTED UNDER PART B MAY BE NOT DEDUCTED AGAIN UNDER PART C. IF PART “D” ELECTION IS
CHOSEN, TAXPAYER MAY NOT CLAIM DEDUCTIONS UNDER PARTS B & C.
A partial list of non-deductible items for Contractors and Real Estate Developers is contained on Page 7. Section IV, D, of Division of
Revenue Tax Information Memorandum 93-5 dated August 19, 1993.
This page must accompany Form 1280-DEV and be attached to the monthly or quarterly gross receipts coupon.
(Form 1280-DEV - Revised 11/2007)

LINE-BY-LINE INSTRUCTIONS
 

FORM 1280-DEV
 


1.	 Enter the account number of the business for which you are filing. This is either a federal employer identification
number or a social security number, and can be found in your annual gross receipts coupon book.
2.	 Enter the contractor’s business name, as it appears on the Delaware business license.
3.	 Enter the contractor’s mailing address.
4.	 Enter the month and year for which the gross receipts tax is being reported. Enter the total amount of gross receipts
being reported. (The total on Line 4 should also be entered on Line 1 of your gross receipts reporting coupon.)
5.	 List payments made to subcontractors. If you are reporting payments to more than five subcontractors, use the back
of Form 1280 for additional space:
1) Enter the subcontractor’s business name and mailing address in the field provided.
 

2) Enter the subcontractor’s employer identification number.
 

3) Enter the total amount of payment(s) made to the subcontractor.
 

4) Enter the subcontractor’s Delaware business license number. Payments to subcontractors without a current
 

business license will be denied.
5) Enter the subcontractor’s business code (this can only be business code 331, 332, 333, 335, 336 or 337).
6.	 Enter the total amount of payments made to subcontractors. (The total on Line 6 should also be entered on Line 2 of
your gross receipts reporting coupon.)
7.	 Subtract Line 6 from Line 4. Enter this amount on Line 7. (The amount on Line 7 should also be entered on Line 3 of
your gross receipts reporting coupon.)
The following is a listing of activities/expenses which are NOT DEDUCTIBLE as amounts paid to subcontractors:
Accounting Expenses
Advertising
Architects
Attorneys
Cleaning
Construction Management
Delivery or transportation charges
Employment Agencies or temporary employees
Engineers
Environmental Studies
Equipment Rental
Exterminators
Hauling

Horticulture
Inspections
Interior Designers/Decorators
Material supplied without labor
Operating Expenses
Realtors
Sanitation
Security
Surveyors
Taxes or other fees paid to any state, county, city or municipality
Trailer Rentals
Trash Removal
Utility Expenses
(Form 1280-DEV - Revised 11/2007)