Delaware Form 5403 Real Estate Tax Return

Submit Delaware Form 5403 along with the deed to the Recorder's Office either in person or by mail. The form must be accurately completed and any due estimated income tax payments included. If assistance is needed, contact the Delaware Division of Revenue. Recommended submission addresses and contacts include: Delaware Division of Revenue, 820 N. French Street, Wilmington, DE 19801, Phone: (302) 577-8200. Ensure all fields are accurately completed to avoid delays.

Ensure you have Delaware Form 5403 submitted with the deed at the time of recording the real estate transaction. Check for any updates on deadlines from the Delaware Division of Revenue for 2024 and 2025 to stay compliant.

Delaware Form 5403 serves as a critical document for non-resident individuals, corporations, trusts, and other business entities involved in the transfer or sale of real estate in Delaware. The primary purpose of this form is to accurately declare and remit the estimated income tax derived from the capital gain on the property sold. By completing this form, sellers ensure that due taxes are calculated correctly and submitted to the Delaware Division of Revenue, thereby complying with state tax regulations.

• 1. Line 1: Enter a description and address of the property transferred/sold, including the tax parcel number and date of transfer.
• 2. Line 2: Check the appropriate box to indicate the type of Transferor/Seller involved in the transaction.
• 3. Line 3: Check the appropriate box to indicate how the Transferor/Seller acquired the property.
• 4. Line 4: Enter the Transferor/Seller’s name, SSN or EIN, and mailing address.
• 5. Line 5: Indicate if the transferor(s)/seller(s) are subject to specific exemptions.
• 6. Line 6.a: Enter the Total sales price of the property.
• 7. Line 6.b: Enter the Selling expenses/reductions to sale price.
• 8. Line 6.c: Compute the Net sales price by subtracting Line 6.b from Line 6.a.
• 9. Line 6.d: Enter the Adjusted basis including the original purchase price, non-deductible closing costs, and the cost of improvements, reduced by past depreciation.
• 10. Line 6.e: Calculate and enter the Total gain by subtracting Line 6.d from Line 6.c.
• 11. Line 6.f: Enter Delaware estimated income tax due by multiplying the amount on Line 6.e by the appropriate tax rate.
• 12. Line 7: If the gain is reported under the installment method, no payment is due at this time, but report any recognized gain as needed.
• 13. Line 8: Enter the amount of Delaware estimated income tax due from Line 6.f, unless following Section 7.
• 14. Signature Line: Transferor/Seller must sign the form and print their full name and title, if applicable.

Failure to submit Delaware Form 5403 along with the required tax remittance may result in significant penalties. Not submitting an accurate declaration can lead to delays in property title recording and potential legal issues.

• Penalties: Fines and penalties may be levied for late or non-submission of the form.
• Delayed Title Recording: The property title may not be recorded until the form and payment are submitted.
• Legal Issues: Non-compliance can result in potential legal ramifications.

• 1. Real Estate Sale: When selling a property in Delaware, this form is required to declare the capital gain.
• 2. Property Transfer: For transferring ownership of real estate, this form must be completed.
• 3. Non-Resident Transactions: Non-residents engaging in Delaware real estate transactions use this form.
• 4. Trusts and Estates: Trusts and estates that handle Delaware property sales utilize this form.
• 5. Business Entities: Corporations, partnerships, and LLCs transfering property in Delaware require this form.