Instructions for Form 400 - Fiduciary Income Tax Return 2017

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DELAWARE
FIDUCIARY INCOME TAX RETURN INSTRUCTIONS
FORM 400-I
FOR TAX YEAR 2017
GENERAL INSTRUCTIONS
WHO MUST FILE RETURNS:
REQUIREMENTS TO FILE ESTIMATED TAX:
A Delaware Fiduciary Return, Form 400, must be filed by:
If the fair market value of the assets of a resident or non-
resident trust, for any taxable year, equals or exceeds $1
• Every resident estate or trust (as defined in Section
million, the trust is required to file estimated tax declarations
1601, Title 30, Delaware Code), which is required to
(Forms 400-ES) for the subsequent taxable year.
file a federal income tax return for the taxable year or
PENALTIES AND INTEREST:
would be required to file a federal income tax return if
the additions provided under Title 30, Delaware Code
§ 1106 were included in its federal gross income, and
INTEREST - Any underpayment or late payment of income
taxes due shall accrue interest at a rate of one-half percent
• Every non-resident estate or trust which has income
(½%) per month, or fraction of a month, from the date
from sources within this State and which is required to
prescribed for payments to the date paid.
file a federal income tax return for the taxable year or
would be required to file a federal income tax return if
PENALTY - LATE FILING OF BALANCE DUE RETURN -
the additions provided under Title 30, Delaware Code
Late filed returns with a balance due are subject to a penalty
§ 1106 were included in its federal gross income, and
of five percent (5%) per month of the balance due.
• Every resident or non-resident estate or trust which
has income from a S-Corporation or other pass-
PENALTY - FAILURE TO PAY - A penalty of one percent
through entity derived from sources within this state.
(1%) per month, not to exceed twenty five percent (25%),
is imposed for the failure to pay (in whole or in part) the tax
The return shall be filed by the trustee of the trust, or the
liability shown to be due on a timely filed return.
executor, administrator, or personal representative of the
decedent.
PENALTY-NEGLIGENCE/FRAUD/SUBSTANTIAL
UNDERPAYMENT - The State of Delaware imposes severe
The final personal income tax return of a deceased individual
penalties for filing a false or fraudulent return, or falsely
shall be filed by the executor, administrator, or other person
certifying a return. Any Delaware return reporting erroneous
charged with the care of his property.
figures from a corresponding federal return will still receive
penalties for negligence or for filing a false or fraudulent
WHEN AND WHERE TO FILE:
return.
Fiduciary Income Tax Returns are due on or before April
AMENDED RETURNS:
30th following the close of the taxable year for all taxpayers
filing on a calendar year basis. All others must file by the last
If the amount of a taxpayer’s federal tax liability reported
day of the fourth month following the close of the fiscal year.
on their Federal Fiduciary Income Tax Return is changed or
corrected by the Internal Revenue Service for any taxable
Returns should be mailed to the Delaware Division of
year, the taxpayer is required to report to the Division of
Revenue, P.O. Box 2044, Wilmington, Delaware 19899-
Revenue such change within ninety (90) days after the final
2044. Payments may be made by check or money order
determination of such change or correction, and indicate
made payable to the Delaware Division of Revenue. Do not
their agreement with such determination or the grounds for
send cash by mail. The full balance is payable by the due
their disagreement. This may be done by filing an amended
date of the return.
return and attaching a copy of the federal adjustment.
EXTENSION OF TIME TO FILE:
SIGNATURE:
Taxpayers desiring an automatic extension of time to file
The return must be signed by the individual fiduciary or an
income tax returns are required to file Form 400-EX, entitled
authorized officer of a corporate fiduciary. If two or more
“Application for Automatic Extension to File Delaware
individuals or corporations act jointly as fiduciaries, the
Fiduciary Income Tax Return”. The automatic extension
return may be signed by either fiduciary.
is to October 15th. The application must be filed with the
Division of Revenue on or before the original due date of
SPECIFIC INSTRUCTIONS
the return (April 30th), along with payment of any balance of
estimated tax liability due for the year. Any unpaid balance
will be subject to interest at one-half percent (½%) per
IDENTIFICATION:
month, or fraction of a month, from the original due date of
the return until paid.
Please type or print the name of the estate or trust and
the name and address of the fiduciary. Enter the Federal
Application for further extension of time beyond October
Employer Identification Number and the Trust Number, if
15th shall be made by filing a photocopy of your approved
any, to assure accurate crediting to the proper account.
Federal Fiduciary Extension before the expiration of the
automatic extension granted on Form 400-EX. A photocopy
FILING STATUS:
of the approved federal extension must be attached to the
return when filed. The approved federal extension will extend
You must check the appropriate box to indicate whether this
the due date of your Delaware return to the same date as
is a return for a resident or non-resident estate or trust.
your federal extension due date.
Page 1
DELAWARE
FIDUCIARY INCOME TAX RETURN INSTRUCTIONS
FORM 400-I
FOR TAX YEAR 2017
GENERAL INSTRUCTIONS
WHO MUST FILE RETURNS:
REQUIREMENTS TO FILE ESTIMATED TAX:
A Delaware Fiduciary Return, Form 400, must be filed by:
If the fair market value of the assets of a resident or non-
resident trust, for any taxable year, equals or exceeds $1
• Every resident estate or trust (as defined in Section
million, the trust is required to file estimated tax declarations
1601, Title 30, Delaware Code), which is required to
(Forms 400-ES) for the subsequent taxable year.
file a federal income tax return for the taxable year or
PENALTIES AND INTEREST:
would be required to file a federal income tax return if
the additions provided under Title 30, Delaware Code
§ 1106 were included in its federal gross income, and
INTEREST - Any underpayment or late payment of income
taxes due shall accrue interest at a rate of one-half percent
• Every non-resident estate or trust which has income
(½%) per month, or fraction of a month, from the date
from sources within this State and which is required to
prescribed for payments to the date paid.
file a federal income tax return for the taxable year or
would be required to file a federal income tax return if
PENALTY - LATE FILING OF BALANCE DUE RETURN -
the additions provided under Title 30, Delaware Code
Late filed returns with a balance due are subject to a penalty
§ 1106 were included in its federal gross income, and
of five percent (5%) per month of the balance due.
• Every resident or non-resident estate or trust which
has income from a S-Corporation or other pass-
PENALTY - FAILURE TO PAY - A penalty of one percent
through entity derived from sources within this state.
(1%) per month, not to exceed twenty five percent (25%),
is imposed for the failure to pay (in whole or in part) the tax
The return shall be filed by the trustee of the trust, or the
liability shown to be due on a timely filed return.
executor, administrator, or personal representative of the
decedent.
PENALTY-NEGLIGENCE/FRAUD/SUBSTANTIAL
UNDERPAYMENT - The State of Delaware imposes severe
The final personal income tax return of a deceased individual
penalties for filing a false or fraudulent return, or falsely
shall be filed by the executor, administrator, or other person
certifying a return. Any Delaware return reporting erroneous
charged with the care of his property.
figures from a corresponding federal return will still receive
penalties for negligence or for filing a false or fraudulent
WHEN AND WHERE TO FILE:
return.
Fiduciary Income Tax Returns are due on or before April
AMENDED RETURNS:
30th following the close of the taxable year for all taxpayers
filing on a calendar year basis. All others must file by the last
If the amount of a taxpayer’s federal tax liability reported
day of the fourth month following the close of the fiscal year.
on their Federal Fiduciary Income Tax Return is changed or
corrected by the Internal Revenue Service for any taxable
Returns should be mailed to the Delaware Division of
year, the taxpayer is required to report to the Division of
Revenue, P.O. Box 2044, Wilmington, Delaware 19899-
Revenue such change within ninety (90) days after the final
2044. Payments may be made by check or money order
determination of such change or correction, and indicate
made payable to the Delaware Division of Revenue. Do not
their agreement with such determination or the grounds for
send cash by mail. The full balance is payable by the due
their disagreement. This may be done by filing an amended
date of the return.
return and attaching a copy of the federal adjustment.
EXTENSION OF TIME TO FILE:
SIGNATURE:
Taxpayers desiring an automatic extension of time to file
The return must be signed by the individual fiduciary or an
income tax returns are required to file Form 400-EX, entitled
authorized officer of a corporate fiduciary. If two or more
“Application for Automatic Extension to File Delaware
individuals or corporations act jointly as fiduciaries, the
Fiduciary Income Tax Return”. The automatic extension
return may be signed by either fiduciary.
is to October 15th. The application must be filed with the
Division of Revenue on or before the original due date of
SPECIFIC INSTRUCTIONS
the return (April 30th), along with payment of any balance of
estimated tax liability due for the year. Any unpaid balance
will be subject to interest at one-half percent (½%) per
IDENTIFICATION:
month, or fraction of a month, from the original due date of
the return until paid.
Please type or print the name of the estate or trust and
the name and address of the fiduciary. Enter the Federal
Application for further extension of time beyond October
Employer Identification Number and the Trust Number, if
15th shall be made by filing a photocopy of your approved
any, to assure accurate crediting to the proper account.
Federal Fiduciary Extension before the expiration of the
automatic extension granted on Form 400-EX. A photocopy
FILING STATUS:
of the approved federal extension must be attached to the
return when filed. The approved federal extension will extend
You must check the appropriate box to indicate whether this
the due date of your Delaware return to the same date as
is a return for a resident or non-resident estate or trust.
your federal extension due date.
Page 1
The law defines a resident or non-resident estate and trust
SCHEDULE B - SHARE OF DELAWARE MODIFICATIONS
as follows:
AND ADJUSTMENTS:
A resident estate means the estate of a decedent who at his
Schedule B is used to allocate the Delaware Modifications
death was domiciled in Delaware.
between the beneficiaries and the fiduciary. Line 1 is to be
used for the fiduciary and will only be used when income
A resident trust means: a trust created by the will of a
is accumulated during the taxable year. Lines 2 through 5
decedent who at his death was domiciled in Delaware or
should be used for the beneficiaries.
a trust created by or consisting of property of a person
domiciled in Delaware; or a trust with respect to which the
The Delaware modifications are to be distributed among
conditions of one of the following paragraphs are met during
the beneficiaries (and the fiduciary in the case of income
more than one-half of any taxable year:
currently) in the same proportion as their share of
distributable net income as determined on Schedule B, Line
1. The trust has only one trustee who or which is (i) a
7 of the Federal Form 1041.
resident individual of this State, or (ii) a corporation,
partnership, or other organization having an office to
COLUMN A - SHARE OF FEDERAL DISTRIBUTABLE
conduct trust business in Delaware.
NET INCOME:
2. The trust has more than one trustee, and at least one
Enter on each line of Column A, the prorated share of total
of the trustees is a corporation, partnership, or other
distributable net income, as determined on Schedule B, Line
organization having an office to conduct trust business
7 of the Federal Form 1041, and the Federal §641(c) income
in this State.
from a S-corporation which was derived from sources within
3. The trust has more than one trustee, all of whom are
this State. Line 1 will be used only when income is accumulated
individuals and one-half or more of whom are resident
by the trust during the taxable year. Lines 2 through 5 should
individuals of this State.”
be the beneficiaries’ share of the distributable net income
and S-corporation income. Attach a worksheet if additional
lines are needed. For more information about distributable
Any estate or trust that does not fall within the above
net income (DNI) and electing small business trusts (ESBT)
definitions is a non-resident estate or trust. For example, a
see the federal Instructions for Form 1041.
trust with three individuals designated as trustees, only one
of whom resides in Delaware, would be a non-resident trust.
PERCENTAGE COLUMN:
PAGE 2, LINE-BY-LINE INSTRUCTIONS
Enter in the percentage (%) column, Lines 1 through 5, the
percentage determined by dividing the fiduciary or each
SCHEDULE A - DELAWARE MODIFICATIONS AND
beneficiary’s share (amount recorded in Column A), by the
ADJUSTMENTS
total section 641(c) and federal distributable net income
(Column A, Line 6). The total of all percentages aisigned
ADDITIONS:
must equal 100%.
Line 1. Interest on obligations of states other than
COLUMN B - SHARE OF DELAWARE MODIFICATIONS:
Delaware - Enter the total amount of interest or
dividends received by the fiduciary on obligations
Enter the amount from Schedule A, Line 8 in Column B,
of any state other than Delaware and its political
Line 6. To determine the amounts for Column B, Lines 1
subdivisions.
through 5, multiply the amount on Line 6, Column B, by
the percentage determined for the fiduciary and each
Line 2. Other adjustments - Enter on Line 2 the
beneficiary, respectively. The total of Lines 1 through 5 must
modifications under Section 1106(a), Title 30,
equal Line 6.
Delaware Code, relating to income or deductions
reportable on the Fiduciary income tax return.
Enter on Page 1, Line 5, the amount from Column B, Line
Line 3. State Income Tax Deducted on a Federal Return
1. The amounts on Lines 2 through 5 of Column B are to be
- Enter the amount of Delaware state income taxes
used on the beneficiaries’ Delaware K-1 forms.
claimed as a deduction on your federal return. Also
include on Line 3, income taxes imposed and paid
SCHEDULE C - INCOME ACCUMULATED FOR NON-
to any other state that are included on your federal
RESIDENT BENEFICIARIES:
return and for which you will claim a credit on Page
1, Line 11 of this return.
A non-resident individual means an individual who (1) is not
domiciled in this State, and (2) does not maintain an abode
in this State, at which he resides an aggregate of 183 days
SUBTRACTIONS:
or more during the taxable year. In order to qualify for the
deduction, the individual beneficiary must meet both tests.
Line 5. Interest or dividends on U.S. Obligations - If the
federal return (Form 1041) required the reporting of
Section 1636, Title 30, Delaware Code, allows a deduction
interest or dividends received on U.S. Obligations,
for the amount which, under the terms of the governing
the Delaware return excludes this income. Enter
instrument, is set aside for future distribution to non-resident
on Line 5 the total amount of interest or dividends
beneficiaries.
received from U.S. Obligations.
Line 6. Other Adjustments - Enter on Line 6, modifications
COLUMN B - DELAWARE SOURCED INCOME:
under Section 1106(b) relating to income or
deductions on the fiduciary income tax return.
Enter each non-resident’s share of income earned by the
taxpayer or from the portion of the trust or estate consisting
Line 8. Net Delaware Modifications - Subtract Line 7 from
of stock of a S-Corporation which is derived from Delaware
Line 4 (retaining any negative sign). Enter result on
Line 8 and Schedule B, Column B, Line 6.
Page 2
sources. Income derived from the ownership or disposition
Delaware taxable income, a credit will be allowed
of an interest in real or tangible personal property, including
against the Delaware tax due. In addition, any
rents and capital gains, or from the ownership or operation
tax credit from Form 700, for which the fiduciary
of a business, trade, commerce or profession carried on in
qualifies, should be included on this line. Enter the
this State is deemed Delaware source income.
total amount of any tax impose and paid to another
state plus any tax credit from Form 700 on Line 11.
COLUMN E - DATES OF NON-RESIDENCY:
NOTE: The total of Line 11 is limited to the amount of your
If a beneficiary was a part-year resident of this State,
Delaware Tax Liability on Line 10. Attach a signed
enter the dates of non-residency during the taxable year. A
copy of the other state return.
beneficiary is not a non-resident or a part-year non-resident
due to a temporary or seasonal absence from this State,
Line 13. Estimated Tax Paid & Payments with Extensions
from which the beneficiary returned to this State.
- Enter total estimated tax payments, including
amounts paid with extension.
COLUMN F - PERCENTAGE OF NON-RESIDENCY:
Line 14. Other Payments - Enter any Real Estate Estimated
Enter the percentage derived by dividing the number of days
taxes paid for 2017 on Line 14. A copy of Form
resided outside this State by 365. Round to four (4) decimal
5403, Real Estate Tax return must be attached to
points.
your return. Any refundable tax credits from form
COLUMN G - TOTAL ALLOWABLE DEDUCTION:
700. Form 700 must be attached.
For all other payments entered on Line 14, please
Total all lines of Column G. This is the net allowable
attach a written explanation.
deduction for income accumulated for part-year and non-
resident beneficiaries. Enter the total on Page 1, Line 6.
Line 16. Previous Refunds - Enter the total amount, if
any, refunded from your original return and/or any
PAGE 1, LINE BY LINE INSTRUCTIONS
previous amended returns on Line 16.
Line 17. Balance Due - If your Balance (Line 12) is
Line 1. Federal Taxable Income - Enter the amount of
greater than your net refundable credits (Line 17),
taxable income from federal Form 1041, Line 22.
determine the difference, enter the balance due on
Line 18, and pay In full.
Line 2. Income of Certain Electing Small Business
Trusts - Trusts making an election under Internal
Line 19. Overpayment - If your net refundable credits (Line
Revenue Code Section 1361(e)(1) enter the
17) are greater than your balance due (Line 12),
income received from a S-Corporation which was
determine the difference and enter on Line 19 the
derived from sources within this State.
amount of overpayment to be refunded to you.
Line 3. Net Modification - Enter the net modifications
from proforma Schedule A, Page 2 for those trusts
DELAWARE FORM 400; SCHEDULE K-1
with IRC § 641(c) income.
Line 5. Delaware Modifications and Adjustments -
Enter amount from Schedule B, Column B, Line 1.
For each beneficiary complete and attach a Schedule
K-1, showing the beneficiary’s share of trust income on
Line 6. Income for Non-Resident Beneficiaries - Enter
Lines 1 through 3. In the case of nonresident beneficiaries,
total from Schedule C.
complete Lines 4 through 11 showing the portions of income
Line 7. Delaware Taxable Income of Fiduciary - Line 4
derived from Delaware sources. This does not include the
plus or minus Line 5 and minus Line 6.
nonresident’s share of passive investment or “portfolio”
Line 8. Tax - Use the tax rate schedule on Page 2 of the
income earned by the trust or estate from publicly traded
return to compute the tax due.
securities, dividends from Subchapter C corporations, and
Line 9. Tax on Lump Sum - Enter the amount from
intangible investment assets not employed by the trust
Delaware Form 329, Line 16.
or estate in a business, trade, commerce, profession or
vocation carried on in this State. A copy of the Schedule
Line 10. Non-Refundable Credits - If the fiduciary has paid
K-1 shall be provided to each beneficiary of a trust or estate
income taxes to another state on income earned
required to file a form 400.
in another state; and, which is also included in
DOWNLOADABLE DELAWARE INCOME TAX FORMS AND INSTRUCTIONS ARE ALSO AVAILABLE ON OUR WEBSITE:
REVENUE.DELAWARE.GOV
CALL TOLL FREE IN DELAWARE: 1 (800) 292-7826
WILMINGTON
DOVER
GEORGETOWN
Division of Revenue
Division of Revenue
Division of Revenue
Carvel State Office Building
Thomas Collins Building, Suite 2
20653 N. DuPont Highway
820 N. French Street, First Floor
540 S. DuPont Highway
Suite 2
Wilmington, Delaware 19801
Dover, Delaware 19901
Georgetown, Delaware 19947
Telephone (302) 577-8200
Telephone (302) 744-1085
Telephone (302) 856-5358
(Revised 12/2017)
Page 3

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