Delaware form 5402 instructions-2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. In Part A, enter the Grantor's Employer Identification Number or Social Security Number, followed by their name and address. Indicate if they are a Resident or Non-Resident Individual, Corporation, or other entity.
  3. Proceed to Part B for the Grantee's information. Fill in their Employer Identification Number or Social Security Number, name, and address. Again, specify their status as a Resident or Non-Resident.
  4. In Part C, provide the property location details and compute the tax. Enter the consideration received and the highest assessed value of the real estate. Calculate the Realty Transfer Tax due based on these values.
  5. Finally, in Part D, if applicable, explain any exemptions from the Realty Transfer Tax and ensure all signatures are completed and notarized.

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In general, the following are excluded from the tax: leasehold interests; mortgage foreclosure sales; conveyances between husband and wife; conveyances between parent and child; conveyances to a religious organization; conveyances without consideration; conveyances between a parent corporation and a wholly owned
Starting January 1, 2021, Delaware mandates online filing for gross receipts taxes, as detailed in TIM 2020-2. To file, visit tax.delaware.gov, where you can submit your tax forms and payments electronically using a credit/debit card or bank transfer.
Property Tax Exemptions: Basics These tax exemptions include the propertys use, such as for religious or charitable purposes, and the form of the propertys ownership. State and local governments use exemptions to help attract new businesses or encourage certain types of property development.
First-time buyers in Delaware typically qualify for state-level exemptions. For example, Delaware first-time buyers automatically qualify for a state transfer tax exemption on a purchase price up to $400,000. First-time buyers purchasing property worth more than $400,000 will pay 1.25% of the amount above $400,000.
Goods: Tangible personal property sold in Delaware is generally exempt from sales tax. So, physical products like clothing, furniture, or electronics wouldnt incur sales tax. Software as a Service (SaaS): Delaware doesnt have a specific tax on SaaS.

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Transfer taxes in Delaware are 4% of the purchase price of the property, with 2.5% going to the state and 1.5% going to the county. Common practice is for the buyer and seller to split the transfer tax costs evenly, with both the buyer and seller paying 2%.
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.
Payment for the tax is split evenly between the buyer and the seller when the closing on the property is completed. There is also a first-time home buyer provision of the transfer tax that allows the purchaser to pay a transfer tax rate of .

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