Delaware Real Estate Tax Return - Declaration of Estimated Income Tax

Real Estate Tax Return - Declaration of Estimated Income Tax
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REAL ESTATE TAX RETURN
DECLARATION OF ESTIMATED
INCOME TAX

1.

Delaware Division of Revenue
DO NOT WRITE OR STAPLE IN THIS AREA
FORM 5403
820 N. French Street, P.O. Box 8763
Wilmington, DE 19899-8763
Form 5403 must be completed for all conveyances, and must be presented at the time of recording.
Description and address of property transferred (include property tax parcel number):

Tax Parcel Number:

2.

County:

New Castle

Transferor/Seller is:

3.

Kent

Sussex

Date of Transfer:

Transferor or Seller acquired property by:
Purchase

Individual or Revocable Living Trust
Corporation
Trust or Estate
Business Trust
Partnership
S Corporation
Limited Liability Company
Other:
4.

Print Form

Gift
Inheritance
1031 Exchange
Foreclosure/Repossession
Other:

Transferor/Seller’s name; SSN or EIN; and address to which correspondence is to be mailed after settlement. (Enter only one name and SSN or EIN
per return. If more than one transferor/ seller, use separate forms for each; however, if Transferors/Sellers are spouses, enter only the primary taxpayer
an ownership interest in any such non-individual transferor/seller.)
Enter Social Security Number

Name of Transferor/Seller
Address
City

5.

State

ZIP Code

If applicable, check appropriate box. (Check no more than one box.)
Transferor/seller is a resident (a) individual, (b) pass-through entity or (c) corporation, and not subject to withholding under 30 Del. C
§§1126, 1606 or 1909;

*DF24018019999*

Sale or exchange exempt from capital gain recognition;

Gain realized excluded from income for tax year of sale or exchange.
DF24018019999
Sale exempt due to foreclosure. (See Instructions)
If any box in Section 5 is checked, DO NOT complete Sections 6, 7 and 8 below. No payment is due at this time.
6.

Computation of payment and tax to be withheld. (See instructions.)
6.a Total sales price
6.b Less selling expenses /reductions to sale price
6.c Net sales price (Subtract line 6.b from line 6.a)

6.a $
6.b $
6.c $

6.d Adjusted basis of property or liens paid at settlement
6.e Total gain (Subtract line 6.d from line 6.c)

6.d $
6.e $

6.f Delaware estimated income tax due - multiply line 6.e by 8.7% for C corp., and by 6.6% for all others
NOTE:
7.

8.

6.f $

.

Check this box if the transferor/seller is reporting gain under the installment method. No tax is payable at this time.
Note: If completing this section, when you recognize any capital gain arising from the sale of property in the State of Delaware, you must report
and remit the tax due to the State of Delaware on that transaction.
Delaware estimated income t ax paid (See instructions).

$

Under penalty of perjury, I declare that I have examined this return and to the best of my knowledge and belief, it is true, correct and complete.
If prepared by a person other than the transferor/seller, the declaration is based on all information of which the preparer has any knowledge.
Transferor/Seller, Please sign and print full name and title (if any):

Signature
(Revised 11/2018)

Name

Title

Delaware Form 5403
Real Estate Tax Return
Declaration of Estimated Income Tax
Instructions
Every non-resident individual, pass through entity or corporation who makes, executes, delivers, accepts, or presents for recording any
document, except those exemptions defined or described in Sections 1126, 1606 and 1909 of Title 30, or in whose behalf any document is
made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part
thereof, an estimated tax payment at a rate of 8.7% for C Corporations and 6.6% for all other entities of the value of the gain on the
property sold as represented by such document, which tax shall be payable at the time of making, execution, delivery, acceptance or
presenting of such document for recording. Said tax is to be paid by the Transferor(s)/Seller(s).

SPECIFIC INSTRUCTIONS
Line 1.

Enter a description and address of the property transferred/sold, including the tax parcel number and date of transfer.
If you need to describe transfer issues please do so here.

Line 2.

Check the appropriate box to indicate whether the Transferor/Seller is an Individual or Revocable Living Trust, a Corporation,
Trust or Estate, Business Trust, Partnership, S corporation, Limited Liability Company, or other, such as a Government Agency
or Non-Profit corporation.

Line 3.

Check the appropriate box to indicate how the transferor/ seller acquired the property.

Line 4.

Enter the Transferor/Seller’s name; SSN or EIN; and address to which correspondence is to be mailed after settlement. (Enter
only one name and SSN or EIN per return. If more than one transferor/ seller, use separate forms for each; however, if
Transferors/Sellers are husband and wife, enter only the primary taxpayer name and SSN, and only file one return. If
transferor/seller is not an individual, list only EIN of non-individual transferor/seller and file only one Form 5403 for such
transferor/seller – no Form 5403 should be filed for the members, partners, stockholders, trustees or other individuals or
entities having an ownership interest in any such non-individual transferor/seller.)

Line 5.

Check the appropriate box to indicate if the transferor(s)/seller(s) are resident individuals, pass-through entities or
corporations that are not subject to net gain withholding; the sale or exchange is exempt from capital gain recognition
because of either Federal or Delaware exemption; the gain realized will be excluded from income for tax year of sale; or the
sale is exempt due to foreclosure pursuant to 30 Del. C. § 1126(b)(3a)(3). If any of the above boxes in Section 5 are checked,
stop here, do not complete Sections 6, 7 and 8 below, and no payment is due at this time. Be sure to only check one box.

Line 6.

On line 6.a enter the Total sales price.
On line 6.b enter the Selling expenses/reductions to sale price.
On line 6.c enter the Net sales price by subtracting line 6.b from line 6.a.
On line 6.d enter the Adjusted basis. Adjusted basis includes the original purchase price of the property, non-deductible
closing costs, and the cost of improvements, reduced by any depreciation previously taken for tax purposes.
On line 6.e enter the Total gain by subtracting line 6.d from line 6.c. This is the transferor’s/seller’s gain for purposes of
computing your estimated payment for Delaware income tax purposes.
On line 6.f enter the Delaware estimated income tax due by multiplying the amount on line 6.e by 8.7% if the taxpayer is a
C corporation, and by 6.6% for all other taxpayers.

Line 7.

If the transferor(s)/seller(s) is/are reporting gain under the installment method no payment is due at this time, but by law
you must report and remit any capital gain tax to the State of Delaware when any capital gain as a result of the sale of
property in Delaware is recognized for Federal tax purposes.

Line 8.

Enter the amount of Delaware estimated income tax due from Line 6.f, unless you completed Section 7. This is the
amount of estimated tax payment due to the Delaware Division of Revenue that you must remit with this form
unless line 7 is completed.

The Transferor/Seller must sign Form 5403, print their full name and title, if any. This form and the estimated income tax, if any, reported due
and payable on this form must be remitted with the deed to the Recorder’s Office before the Recorder shall record a deed conveying title
in Delaware real estate. The tax returns or reports and the amounts of tax collected pursuant to Title 30 of the Delaware Code, Sections
1126, 1606 or 1909, and the Recorder’s Office and its employees or agents, shall be subject to the secrecy provisions and penalties of
Title 30 of the Delaware Code, Section 368.
If you need assistance with filling out this form please contact the Division of Revenue at (302) 577-8200.
(Revised 11/2018)