2020 Delaware Code
Title 30 - State Taxes
Chapter 16. Pass-Through Entities, Estates and Trusts
Subchapter I. In General
§ 1601 Definitions.
Whenever used in this chapter, the following terms shall have the meanings ascribed to them in this section:
(1) “Beneficiary” has the meaning ascribed to it by common law, including, without limitation, any heir, devisee or legatee of an estate or beneficiary of a trust.
(2) “Distributive share” means, with respect to any member and with respect to any taxable year of such member:
In the case of a pass-through entity that is classified as a partnership under the Internal Revenue Code, the distributive share of such member for such taxable year of the pass-through entity's income, gain, loss or deduction, or items thereof, as appropriate, determined under § 704 of the Internal Revenue Code [26 U.S.C. § 704]; or
In the case of a pass-through entity that is an S corporation for federal income tax purposes, the pro rata share of such member for such taxable year of the pass-through entity's income, gain, loss or deduction, or items thereof, as appropriate, determined under § 1377(a) of the Internal Revenue Code [26 U.S.C. § 1377(a)].
(3) “Member of a pass-through entity” or “member” means a person treated for federal income tax purposes as either a partner in a partnership or a shareholder of an S corporation, but does not include a beneficiary of an estate or trust.
(4) “Nonresident estate” means an estate which is not a resident estate.
(5) “Nonresident trust” means a trust that is not a resident trust of this State.
(6) “Pass-through entity” means any person:
a. Which is classified as a partnership under the Internal Revenue Code [26 U.S.C. § 1, et seq.]; or
b. Which is classified as an “S corporation” for federal income tax purposes within the meaning of § 1361 of the Internal Revenue Code [26 U.S.C. § 1361].
(7) “Resident estate” means the estate of a decedent who at death was domiciled in this State.
(8) “Resident trust” means a trust:
a. Created by the will of a decedent who at death was domiciled in this State;
b. Created by, or consisting of property of, a person domiciled in this State; or
c. With respect to which the conditions of 1 of the following paragraphs are met during more than 1/2 of any taxable year:
1. The trust has only 1 trustee who or which is:
A. A resident individual of this State, or
B. A corporation, partnership or other entity having an office for the conduct of trust business in this State;
2. The trust has more than 1 trustee, and 1 of such trustees is a corporation, partnership or other entity having an office for the conduct of trust business in this State; or
3. The trust has more than 1 trustee, all of whom are individuals and 1/2 or more of whom are resident individuals of this State.
(9) “Trust” means an entity classified as a trust for federal income tax purposes, other than a trust of which the grantor or another person is treated as the owner of the entire trust under §§ 672 through 679 of the Internal Revenue Code [26 U.S.C. §§ 672-679].
