Brian Funk’s Unofficial Guide to the Universe for Delaware Settlement Attorneys on the New Delaware Form 5403 for Non-Resident Withholding on Sale of Real Estate
What is the purpose of withholding income tax on the sale of real property on non-residents? Income tax is imposed on gain from the sale of real property (unless it’s exempt). In English, the gain is calculated by taking the amount realized and subtracting it from the adjusted basis. It’s obviously harder for Delaware to […]
INTESTATE Heirs Selling Real Estate
Delaware Heirs Selling Real Estate when the Decedent Died Without a Will (Guidance from a Settlement Attorney): Unlike some states, in the State of Delaware, when a person died as the sole owner of real estate and died without a Last Will & Testament (i.e. the person died intestate), the estate itself is NOT the […]
City of New Castle’s New First-Time Home Buyer (FTHB) Transfer-Tax Exemption for its Downtown Development District
The City of New Castle has created a first-time home buyer (FTHB) transfer tax exemption program limited to residential properties within its specifically designated Downtown Development District (DDD). If the property is within the DDD of the City of New Castle, the standards to qualify mirror the State of Delaware’s own FTHB standards . You […]
Delaware’s New Mandatory Withholding of Estimated Income Tax for Non-Residents on Real Estate Transactions on Form 5403 (starts 1/1/2019)
“To all my Delaware settlement attorney friends, I wanted to share my notes from the past year of meetings, conference calls, and the special 1-hour CLE seminar in October 2018 on the changes taking place on 1/1/2019 for the Form 5403. If you have any comments or suggestions, I’d love to hear them as I’m […]
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