Instructions For C-8022 Farmland Preservation Tax Credit - Michigan Department Of Treasury

ADVERTISEMENT

2007 C-8022, Page 3
Instructions for C-8022
Farmland Preservation Tax Credit
Note: Fiscal filers please see the supplemental instructions
Form MI-1040CR-5 can be found on our Web site at:
or call 1-800-827-4000.
found on page 5 of the instructions.
Farmland Preservation Tax Credit Defined
Claiming the Credit
The Farmland Preservation Tax Credit gives back to farmland
Complete Form C-8022. If applying this credit to SBT liability,
owners a share of the property tax they pay on their farmland.
attach it to the Single Business Tax Annual Return (Form C-
Farmland owners qualify for credit by agreeing to keep the
8000). Attach a copy of page 1 of U.S. 1120 or 1041 and
land as farmland and not develop it for another use.
copies of all the federal schedules completed for the federal
tax return. The following must also be included:
Farmland Preservation Tax Credit Requirements
• A copy of the taxpayer's 2007 property tax statement(s)
To qualify, the following requirements must be met:
(bills) with corresponding agreement numbers listed on
• Taxpayer must own farmland and
each.
• Taxpayer must have entered into a Farmland Development
• A copy of the receipt showing that 2006 or 2007 property
Rights Agreement (FDRA) with the Michigan Department
taxes were paid. If property taxes have not been paid or
of Agriculture (MDA).
receipt(s) are not attached, Treasury will mail a check
made jointly payable to the corporation, estate or trust and
If agreements were entered into on or after January 1, 1978,
the county treasurer for the county where the property is
the gross receipts qualifications in Part 1 must be met.
located. (A new check payable only to the corporation,
Farmland Development Rights Agreement
estate or trust will not be issued if it is later proved that
Through an FDRA, a taxpayer may receive property tax
the taxes had been paid.)
relief in return for a pledge not to change the use of the
• If the property tax statement (bill) includes property that
taxpayer's lands.
is not covered under an FDRA, the taxpayer must show
Note: The FDRA restricts development of land. Before
what portion of total acreage and property tax is for land
making any changes to property covered under this
enrolled in the FDRA. A local equalization officer or
agreement or to its ownership, consult the MDA. Some
local assessor must give this information on official
changes may make property ineligible for credit.
letterhead if it is not listed separately on property tax bills.
Filing the Correct Form
When to Claim a New Agreement
The following should file using form C-8022:
New agreements must be approved by the local government
by November 1, 2007, to claim a 2007 credit. But the FDRA
• Estates, include property taxes from the date of death and
is not final until a copy is received from the MDA that has
farm income required to be reported on your U.S. 1041.
been recorded at the Register of Deeds. Credit for the new
• Corporations other than S corporations.
FDRA will not be allowed unless a copy of the recorded
• S corporations that had an FDRA before January 1, 1989,
agreement is attached to the return. If the taxpayer doesn’t
and in 1991 elected to file form C-8022.
get a notice before April 30th, file the return without that
• Trusts, except as noted below.
agreement. File a new C-8022 with an Amended Single
Business Tax Return (C-8000X) when the FDRA is received.
The following should file using the MI-1040CR-5:
Jointly Payable Checks
• Individuals who own a farm independently.
• Representatives of deceased single persons. Include property
The taxpayer should take the check, check stub and a copy of
taxes and income from January 1 to the date of death.
the FDRA(s) to the county treasurer(s) who will have the
taxpayer endorse the check and then use the refund to pay
• Partnerships.
any delinquent taxes. Any remaining amount will be returned
• Joint owners.
to the taxpayer.
• S corporation shareholders, except shareholders of S
Property Taxes That Can Be Claimed for Credit
corporations that had an FDRA before January 1, 1989,
and in 1991 elected to file under the Single Business Tax
The property taxes levied in 2007 on enrolled land are eligible
Act on form C-8022.
for the 2007 credit, regardless of when they are paid.
• Grantor trusts (if treated as an owner under Internal
Ad valorem property taxes that were levied in 2007 including
Revenue Code, Sections 671 to 679).
collection fees up to one percent of the taxes can be claimed
• Trusts created by the death of a spouse if the trust
for credit. Special assessments (those not based on taxable
value), penalties and interest cannot be claimed.
requires 100 percent of the income from the trust to be
distributed each year to the surviving spouse.

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 4