Instructions For Delaware Form 400-I - 2012 (Page 2 of 3) in pdf

The law defines a resident or non-resident estate and trust as

SCHEDULE B - SHARE OF DELAWARE MODIFICATIONS

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 is

“A resident trust means: a trust created by the will of a decedent

accumulated during the taxable year. Lines 2 through 5 should

who at his death was domiciled in Delaware; or a trust created

be used for the beneficiaries.

by or consisting of property of a person domiciled in Delaware;

or a trust with respect to which the conditions of one of the

The Delaware Modifications are to be distributed among the

following paragraphs are met during more than one-half of any

beneficiaries (and the fiduciary in the case of its income

taxable year:

currently) in the same proportion as their share of Distributable

Net Income as determined on Schedule B, Line 7 of the Federal

1. The trust has only one trustee who or which is (i) a resident

Form 1041.

individual of this State, or (ii) a corporation, partnership, or

other organization having an office to conduct trust business

COLUMN A - SHARE OF FEDERAL DISTRIBUTABLE NET

in Delaware.

INCOME:

2. The trust has more than one trustee, and at least one of

Enter on each line of Column A, the prorated share of total

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 in

7 of the Federal Form 1041, and the Federal §641(c) income

this State, or

from a S-corporation which was derived from sources within

this State. Line 1 will be used only when income is accumulated

3. The trust has more than one trustee, all of whom are

by the trust during the taxable year. Lines 2 through 5 should

individuals and one-half or more of whom are resident

be the beneficiaries’ share of the Distributable Net Income and

individuals of this State.”

S-corporation income. Attach a worksheet if additional lines

are needed. For more information about Distributable Net

Any estate or trust that does not fall within the above definitions

Income (DNI) and Electing Small Business Trusts (ESBT) see

is a non-resident estate or trust. For example, a trust with three

the Federal Instructions for Form 1041.

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 total

ADJUSTMENTS:

section 641(c) and Federal Distributable Net Income (Column

A, Line 6). The total of all percentages assigned must equal

ADDITIONS:

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 of

Enter the amount from Schedule A, Line 8 in Column B, Line 6.

any state other than Delaware and its political

To determine the amounts for Column B, Lines 1 through 5,

subdivisions.

multiply the amount on Line 6, Column B, by the percentage

Line 2. Other adjustments - Enter on Line 2 the modifications

determined for the fiduciary and each beneficiary, respectively.

under Section 1106 (a), Title 30, Delaware Code,

The total of Lines 1 through 5 must equal Line 6.

relating to income or deductions reportable on the

Fiduciary Income Tax Return.

Enter on Page 1, Line 5, the amount from Column B, Line 1.

Line 3. State Income Tax Deducted on a Federal Return -

The amounts on Lines 2 through 5 of Column B are to be used

Enter the amount of Delaware state income taxes

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 to

SCHEDULE C - INCOME ACCUMULATED FOR NON-

any other State that are included on your Federal Return

RESIDENT BENEFICIARIES:

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

SUBTRACTIONS:

this State, at which he resides an aggregate of 183 days or

more during the taxable year. In order to qualify for the

Line 5. Interest or dividends on U.S. Obligations - If the

deduction, the individual beneficiary must meet both tests.

Federal Return (Form 1041) required the reporting of

interest or dividends received on U.S. Obligations, the

Section 1636, Title 30, Delaware Code, allows a deduction for

Delaware return excludes this income. Enter on Line 5

the amount which, under the terms of the governing instrument,

the total amount of interest or dividends received from

is set aside for future distribution to non-resident beneficiaries.

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

Enter each non-resident’s share of income earned by the

on the Fiduciary Income Tax Return.

taxpayer or from the portion of the trust or estate consisting of

Line 8. Net Delaware Modifications - Subtract Line 7 from

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

Instructions For Delaware Form 400-I - 2012 Page 2

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