Delaware Delaware Partnership Instructions

Delaware Partnership Instructions
Form 300i
DELAWARE

2023

Partnership Return Instructions
FORM PRT-RTN (FORMERLY FORM 300)

Revised 12/20/23

WHO MUST FILE RETURNS
A PARTNERSHIP RETURN MUST BE COMPLETED BY ANY BUSINESS TREATED AS A PARTNERSHIP FOR FEDERAL
PURPOSES WHICH HAS ANY INCOME OR LOSS, REGARDLESS OF AMOUNT, DERIVED FROM OR CONNECTED WITH
A DELAWARE SOURCE. IF THE PARTNERSHIP HAS NO DELAWARE SOURCED INCOME OR LOSS, NO RETURN IS
REQUIRED TO BE FILED.
Income derived from Delaware sources includes: (a) income attributable to the ownership of any interest in
real property or tangible personal property located in Delaware and intangible personal property to the extent
the intangible is used in a trade, business, profession, or occupation carried on in Delaware; and (b) income
attributable to a trade, business, profession or occupation conducted in Delaware.

COMPUTATION OF THE TAX

schedules, must be attached to the Delaware amended return.

How Do I Fill in the Payment Voucher?

NATURE OF BUSINESS

A partnership, as such, is not subject to tax. Instead, the partnership’s
partners are liable for Delaware personal income tax on their respective
shares of partnership income.

Please enter the business code number from Federal Form 1065, Item C
on page 1.

A non-resident partner of a partnership with income from Delaware
sources must file Form PIT-NON or a Composite Return, and report their
share of Delaware sourced partnership income or loss. A resident partner
must file Form PIT-RES and must report their share of partnership income
or loss.

Line A – If the address of the partnership has changed, check the Change

WHEN AND WHERE TO FILE
Partnerships must file by the 15th day of the third month following the
expiration of the taxable period (March 15 for calendar year taxpayers).
Returns should be mailed to the Delaware Division of Revenue, P.O. Box
8703, Wilmington, DE 19899-8703.

EXTENSION OF TIME TO FILE
Extension of time to file returns may be obtained by submitting a copy
of the Federal extension application on or before the due date of the
partnership return. A photocopy of the approved Federal extension MUST
be attached to the return when filed. The approved Federal extension
will extend the due date of the Delaware return to the same date as your
Federal extension due date.

PENALTIES AND INTEREST
PENALTY - FAILURE TO FILE - A penalty will be imposed on partnerships
for failure to file a partnership return or failure to furnish the information
on such return. The amount of the penalty imposed for each month such
failure continues, is the product of $25.00 times the number of partners
during any part of the taxable year but is limited to a maximum of 5
months.
PENALTY - NEGLIGENCE/FRAUD - The law provides severe penalties for a
false or fraudulent return, or for making a false certification. The mere fact
that the figures you report on your Delaware return are taken from your
Federal return will not relieve you from the imposition of these penalties.

AMENDED RETURNS

of Address box. Also indicate which address has changed by checking the
box for Location, Mailing and/or Billing address.
Every partnership must attach a complete copy of the Federal form 1065,
as filed with the Internal Revenue Service, including all schedules other
than Schedule K-1.

SCHEDULE 1 - PARTNERSHIP SHARE OF INCOME AND
DEDUCTIONS WITHIN AND WITHOUT DELAWARE
This schedule is to be completed by all partnerships required to file in
Delaware. Any partnership claiming the pass-through of any Delaware
business tax credit should complete and attach Delaware Form 700.

Line 3 – If the partnership did business in Delaware and one or more

other states during the year, Line 3 should be derived by multiplying the
partnerships income on line 1 times the apportionment factor calculated
on Schedule 2, Section D, Line 16, unless the partnership has maintained
records of allowing for a complete separate accounting for its items of
Delaware sourced income and deductions. If the partnership did business
only in Delaware, then it is not necessary to complete Schedule 2 and
Columns A and B will be the same.
You must attach an explanatory statement: (a) with respect to any item
allocated, in whole or in part, to a source outside Delaware; and (b) in the
event a partnership conducting business in Delaware and in one or more
other states do not calculate Column B by means of the apportionment
percentage method.

Lines 5 through 14 – Items connected with or derived from sources

within Delaware include: (1) taxable dividends, net gains, or losses
from sales of intangible personal property when Delaware is the place
from which the trade or business of the filing partnership is directed
or managed provided the property is used in a trade or business of the
partnership; and (2) income derived by virtue of an activity conducted, or
tangible property located, in Delaware.

The Partnership can make changes to income, deductions, credits, etc.,
by filing an amended partnership return. This form should also be filed
when you have been notified as to the results of a federal audit. A copy of
the federal audit and/ or amended Federal Form 1065, with all supporting
Page 1

Line 10 - Enter in Column A, all other gross income (if any) of the

SCHEDULE 2 - APPORTIONMENT PERCENTAGE
Section A - GROSS REAL AND TANGIBLE PERSONAL PROPERTY
Partnerships with (a) income or loss derived from or connected with
sources within Delaware and another state, and (b) one or more partners
who are non-residents of Delaware, must file Schedule 2.
Include in the factor on the appropriate line the partnership’s share of
a) real and tangible property owned and/or rented; b) wages, salaries,
bonuses, and other compensation; c) gross receipts from the sale of
tangible personal property; and d) gross income from other sources
resulting from the partnership’s proportionate ownership as a general or
limited partner in an active partnership.

partnership from sources derived from activities performed within the
State of Delaware which is not tax exempt and/or reflected on Page 1,
Schedule 1, Lines 5 through 14. Enter in Column B, all other gross income
(if any) of the partnership, regardless of source, which is not tax exempt
and/or reflected on Page 1, Schedule 1, Lines 5 through 14.

Line 11 - Add Lines 9 and 10.
SECTION D - DETERMINATION OF APPORTIONMENT
PERCENTAGES
Line 12a - Enter the amount from Column A, Line 7.
Line 12b - Enter the amount from Column B, Line 7.

NOTE: COLUMN A RELATES TO PROPERTY AND ITEMS OF
INCOME AND/OR LOSS FOR THE PARTNERSHIP DERIVED
FROM SOURCES WITHIN DELAWARE. COLUMN B RELATES
TO THE TOTAL OF ALL SOURCES OF PROPERTY AND
ITEMS OF INCOME AND/OR LOSS FOR THE PARTNERSHIP.

Line 12c - Divide Line 12a by Line 12b and enter the result on Line 12c.
Line 13a - Enter the amount from Column A, Line 8.

Line 13a - Enter the amount from Column A, Line 8.

Line 1 - Enter the original cost value of real and tangible personal
property owned and used by the partnership for the beginning and at the
end of the taxable year.

Line 2 - Enter the value of rented real and tangible property used by the
partnership. The value is computed at eight (8) times the annual rental
cost of the property.

.

Line 13b - Enter the amount from Column B, Line 8.
Line 13c - Divide Line 13a by Line 13b and enter the result on Line 13c.
Line 14a - Enter the amount from Column A, Line 11.

Line 14a - Enter the amount from Column A, Line 11.
Line 14b - Enter the amount from Column B, Line 11.
Line 14c - Divide Line 14a by Line 14b and enter the result on Line 14c.

NOTE: REAL AND TANGIBLE PERSONAL PROPERTY OWNED
BY THE UNITED STATES GOVERNMENT THAT IS USED OR
OPERATED BY THE PARTNERSHIP SHALL BE DISREGARDED.

Line 15 - Add Lines 12c, 13c and 14c.
Line 16 - If the partnership has a percentage for all three apportionment

Line 3 - Add Lines 1 and 2.
Line 4 - Enter the original cost value of any real and tangible personal
property for which income was reported on Page 1, Schedule 1, Line 5
through 14.

Line 5 - Net Values. Subtract Line 4 from Line 3.

factors (Lines 12c, 13c and 14c), divide Line 15 by three (3). If the
partnership only has two apportionment factors, divide Line 15 by two (2).
If the partnership has only one apportionment factor, enter the amount
of Line 15 on Line 16.

SCHEDULE K-1:
The partnership is required to prepare and give a Schedule K-1 to each
person who was a partner in the partnership at any time during the year.

Line 6 - Combine the totals on Line 5 for each column.

For an individual partner, enter the partner’s social security number (SSN)
or individual taxpayer identification number (ITIN). For all other partners,
enter the partner’s employer identification number (EIN).

Line 7 - Divide the amount on Line 6 by two (2) for each column.
SECTION B - WAGES, SALARIES AND OTHER COMPENSATION
Line 8 - Enter in Column A, the total wages, salaries, bonuses, and other
compensation you paid or accrued to employees and/or officers engaged
in employment within the State of Delaware. Enter in Column B, the total
wages, salaries, bonuses, and other compensation you paid or accrued to
ALL employees and/or officers regardless of place of employment.

Identify the partner’s type of entity by entering the appropriate code and
descriptions. These codes are identified below:
Partner’s Type of Entity Codes and Descriptions
Code

SECTION C – GROSS RECEIPTS SUBJECT TO APPORTIONMENT
NOTE: ALL PERCENTAGES SHOULD BE COMPUTED TO AT
LEAST SIX (6) DECIMAL PLACES (DO NOT ROUND UP).

Line 9 - Enter in Column A, the partnership’s gross receipts from sales

of tangible personal property physically delivered to the purchaser or
his agent within the State of Delaware. DO NOT INCLUDE delivery to the
United States mail or to a common or contract carrier for shipment to a
place outside Delaware. Enter in Column B, the partnership’s total gross
receipts from the sales of tangible personal property for the taxable year.

Description

Code

Description

01

Individual

08

Trust

02

Partnership

09

Coopertive

03

Non-Profit Organization

10

Holding/Investment Corporation

04

Domestic Corporation

11

Professional Association

05

Foreign Corporation

12

Bank/Financial Institution

06

Subchapter Corporation

13

Limited Liability Company

07

Estate

14

Other - Please Describe

The amounts reported in Column B should equal, in the case of Delaware
residents, the total of Lines 1 through 11 of the Federal Form K-1. In the
case of non-residents, it should equal the total of the Column B (“Within
Delaware”) from Page 1, Schedule 1, Lines 4 through 14.

Page 2

	

New Castle County

Kent County

Sussex County

Carvel State Office Building
820 North French Street
Wilmington, DE 19801
(302) 577-8200

Thomas Collins Building
540 S DuPont Highway Suite 2
Dover, DE 19901
(302) 744-1085

20653 N. DuPont Highway Suite2
Georgetown, DE 19947
(302) 856-5358

	
Toll-free telephone number (Delaware only) 1-800-292-7826
Mail return to Delaware Division of Revenue, P.O. Box 8703, Wilmington, Delaware 19899-8703

Page 3