Instructions For Form 807 - Composite Individual Income Tax Return (Page 4 of 4) in pdf

are

the

Participants’ Total Income Worksheet

2016 807, Page 9

Column A refers to Distributive Income categories from Schedule K form(s). Columns B and C refer to lines

(QPAI) at the entity level. Also include

on the U.S. Form 1065 Schedule K and U.S. Form 1120S Schedule K. Column D is the list of amounts that

pension benefits paid to nonresident

are added to arrive at participants’ total income that is reported on Form 807, line 45.

partners that were included in ordinary

income but are excluded from Michigan

Participants’

U.S. Form 1065 U.S. Form 1120S

Distribute Income

tax under section 114 of Title 4 of the

Distributive Income Categories

Schedule K

Amounts

U.S. Code. Also, include income and

Ordinary income (loss) from trade or business

related expenses from oil and gas and

activity

nonferrous metallic minerals extraction

Net income (loss) from rental real estate activity

subject to Michigan severance tax.

Net income (loss) from other rental activity

Attach a schedule of all subtractions.

Portfolio income (loss):

Michigan Allocated Income or

Interest income

Loss

Dividend income

Line 39 : Enter all guaranteed payments

Royalty income

attributable to Michigan. This includes

Net short-term capital gain (loss)

all payments to Michigan residents and

Net long-term capital gain (loss)

payments to nonresidents for services

performed in Michigan.

Guaranteed payments

Line 4 0: Enter

income

loss

Net gain (loss) under section 1231

from other fiduciaries or other FTEs

Other income (loss)

attributable to Michigan that have not

TOTAL INCOME

been reported on another composite

Add all amounts in Column D and carry total to Form 807, line 45.

return. Attach a schedule showing the

Line 45: Enter the participants’ total income as determined

amount of income or loss attributable to

using the Participants’ Total Income Worksheet above.

each.

Line 46: Compute the percentage of participants’ income

Line 41: Enter gains/losses from the sale of real or personal

that is attributable to Michigan by dividing Michigan income

property located in Michigan not subject to apportionment.

(line 44) by total income (line 45). This figure may not exceed

Line 42: Enter any other income (loss) allocated to Michigan.

100 percent.

Include any Michigan net operating loss deduction (NOLD).

Line 47: Multiply the percent of Michigan income to total

Attach schedules.

income as determined on line 46 by $4,000. The result is the

The NOLD may be taken only to the extent that it is attributable

maximum exemption allowance a participant may be eligible to

to the same participating members from the loss year, and in the

claim.

same proportions of ownership.

Line 49: For each member included on Schedule A, Schedule of

Include any Michigan standard deduction as a negative number.

Participants include the lesser of:

The standard deduction of $20,000 against taxable income

• The amount on line 47, or

before personal exemptions is only available to a taxpayer

• That member’s Distributed Share of Michigan Income from

who was born during the period January 1, 1946 through

Column 1 of the Schedule A, Schedule of Participants.

January 1, 1950, and reached age 67 on or before December 31,

Enter on line 49 the sum of the result above for all participants.

2016. A taxpayer eligible for the Michigan standard deduction

The amount entered on line 49 may not exceed the product of

may increase the $20,000 deduction to $35,000 if the taxpayer

lines 47 and 48.

received retirement or pension benefits from employment with a

governmental agency that was not covered by the federal Social

SEP, SIMPLE or Qualified Plan Subtractions

Security Act.

(PARTNERS ONLY)

If the taxable share of Michigan income of a participant eligible

Line 50: Figure the portions of Simplified Employee Pensions

for the standard deduction is less than the allowable standard

(SEP), Savings Incentive Match Plan for Employees (SIMPLE),

deduction, the excess standard deduction cannot be used to

or qualified plan deductions

which

attributable

offset other members’ taxable income. Attach

a schedule

participants. Attach a schedule showing calculations.

identifying each member taking a standard deduction. Include

their date of birth and the amount of standard deduction taken.

Forms

Nonresidents are not subject to tax on retirement and pension

Michigan tax forms are available at

benefits, therefore, nonresidents may not deduct such benefits.

Exemption Allowance

Michigan’s personal exemption allowance is prorated for all

nonresident participants based on Michigan income to total

income.

Instructions For Form 807 - Composite Individual Income Tax Return Page 4

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