Form D-1040 (R)- City Of Detroit Income Tax Resident Instructions

Page 3

OVERPAYMENT OR TAX DUE

PLEASE NOTE: The Self Employment Tax and the self

Employed Health Insurance deductions allowed on the Federal tax

LINE 17 — If Line 16 is larger than Line 12, enter amount of over-

return are not allowed as deductions on the Detroit tax return.

payment.

LINE 7 — RENTS AND ROYALTIES — Enter net income (or

LINE 18 — Enter amount of overpayment to be refunded to you.

loss) from rents and royalties as reported on your

The city cannot refund an amount of less than one dol-

Federal tax return; attach a copy of your Federal

lar ($1.00).

schedule.

LINE 19 — Determine amount of overpayment you want credited

PLEASE NOTE: The Passive Loss Limitations as set forth in the

to your 2011 estimated tax; enter amount.

Internal Revenue Code apply when taking the

LINE 20 — If Line 12 is larger than Line 16, enter amount of TAX

rental loss deduction on the Detroit Income Tax

DUE DETROIT — Pay in full if One Dollar ($1.00)

Return, maximum $25,000.

or more. Make check or money order payable to

LINE 8 — MISCELLANEOUS — Report Michigan Lottery

TREASURER — CITY OF DETROIT

winnings, distributions from employees savings or

DO NOT MAIL CASH. PAY CASH IN PERSON.

retirement stock purchase and profit sharing plans

which are classified as wages not subject to withhold-

If you are required to pay more than $100 with your return, you

ing, and distributions which are received from quali-

may be required to file a Declaration of Estimated Tax (Form D-

fied trusts upon termination of employment that are

1040ES) for 2011. The Declaration for 2011 is due on or before

taxable under the Internal Revenue Code.

April 30, 2012. Estimated tax forms and instructions may be

obtained from the Detroit Income Tax Division.

LINE 9 — Enter total of Part 1 — add Lines 1 through 8. Enter

INSTRUCTIONS FOR PAGE 2, PART 1

here and on Page 1, Line 2.

INSTRUCTIONS FOR PAGE 2, PART 2

OTHER INCOME (OR LOSSES)

LINE 1 — Enter interest and/or dividends from Federal tax

DEDUCTIONS FROM INCOME

return.

The deductions which are allowed on the Detroit return are listed in

this section. Each adjustment may be limited to the amount report-

LINE 2 — Report distributions from a tax-option corporation. A

ed on your Federal tax return.

tax-option corporation is a corporation that elects to

file under Sub-Chapter S of the Internal Revenue

LINE 1 — Enter employee business expenses from Federal Form

C o d e . Y O U M AY N O T D E D U C T A N Y L O S S

2106.

FROM A SUB-CHAPTER S CORPORATION or

Business expenses are allowable to the extent they are not paid by

other tax-option corporation.

your employer. These expenses are limited to the following:

LINE 3 — Income from an estate or trust is taxable to a Detroit

Expenses of travel, meals and lodging while away from home

resident, regardless of the location of the estate or

overnight.

trust, or location of property it may own.

Expenses incurred as an outside salesman who works away

LINE 4 — SALES AND EXCHANGES OF PROPERTY (CAPI-

from his employer’s place of business. This does not include

TAL GAINS AND LOSSES)

the expenses of a driver-salesman whose primary duty is

Enter net income (or loss) from sales and exchanges of property per

service and delivery.

your Federal tax return.

Expenses of transportation other than transportation to and

Enter portion of gain (or loss) on Line 4 which occurred after June

from work.

30, 1962 (attach detail).

Expenses reimbursed under an expense account or other

Gain or loss on property purchased prior to July 1, 1962 must be

arrangement with your employer, if the reimbursement has

determined by one of the following methods:

been included in gross earnings.

1. The basis may be the adjusted fair market value of the property

Miscellaneous business expenses such as professional dues,

on July 1, 1962 (July 2nd closing price for traded securities),

supplies, education and others not covered by (a) through (d) above

are not deductible for Detroit Tax purposes. These expenses would

be shown on Federal Schedule A (itemized Deductions). Federal

Divide the number of months the property has been held since

Form 2106 should be attached for allowable business expenses.

June 30, 1962 by the total number of months the property was

held, and apply this fraction to the total gain or loss as reported

LINE 2 — Enter moving expenses from Federal Form 3903

on your Federal income tax return.

(attach form). Only the expenses of a move to Detroit

which result in Detroit income are deductible for

LINE 5 — Report your share of partnership income (or loss) as

Detroit tax purposes. The expenses of a move out of

shown on Federal Schedule K-1, etc. (attach).

Detroit are not deductible on this return.

LINE 6 — PROFIT (OR LOSS) FROM BUSINESS OR

PROFESSION.

Enter net profit (or loss) per Federal Schedule C. Detroit residents

are taxed on the net profits from a business or profession, regard-

less of the location of the business or profession.

Form D-1040 (R)- City Of Detroit Income Tax Resident Instructions - 2010 Page 3

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