Instructions For Completing Schedule Mi-1040d - Michigan Department Of Treasury printable pdf download

Instructions for Completing Schedule MI-1040D

Distributions from employee’s pension, bonus or profit-sharing

When to File

trust plans that are considered to be long-term capital gains (under

Use this form to adjust your Michigan taxable income if you

Section 402 of the Internal Revenue Code) and capital gains

have capital gains or losses attributable to:

distributions are not eligible for Section 271 treatment.

1) Periods before October 1, 1967 (Section 271 adjustment). If

Sale of Property. Enter the total gain in both the federal and

you file U.S. 1040D or 4797 and you elect to adjust under

Michigan columns. Enter in the Michigan column the gain or loss

Section 271 of the Michigan Income Tax Act, you must file the

from the sale or exchange of:

equivalent Michigan forms (MI-1040D or MI-4797). You must

1) Real property located in Michigan, or

include all items of gain or loss realized during the tax year.

2) Tangible personal property located in Michigan at the time of

2) Gains or losses from the sale or exchange of U.S. obligations

the sale or owned by a Michigan resident and not subject to tax

that cannot be taxed by Michigan.

in the state where the property is located, or

3) Gains or losses from property subject to the allocation and

3) Intangible personal property sold by a Michigan resident.

apportionment provisions.

U.S. Obligations. Gains from the sale of some U.S. obligations

Schedule MI-1040D must be attached to your Michigan income

are not subject to tax and losses are not deductible. Enter a zero in

tax return (MI-1040).

the Michigan columns for gains or losses realized from the sale of

General Information

these non-taxable U.S. obligations.

Michigan form MI-1040D follows the U.S. 1040D and all the

Note: Any interest expense and other expenses incurred in the

information necessary for completing it should be taken from your

production of income from U.S. obligations should be offset

U.S. 1040D.

against dividend and interest income from U.S. obligations on the

MI-1040 return. See the instructions for MI-1040 Schedule 1

Beginning with tax year 1999, Schedule MI-1040D computations

line 8 in the MI-1040 instruction booklet.

must be carried to MI-1040 Schedule 1. Both Schedules

(MI-1040D and MI-1040 Schedule 1) must be attached to your

Out-of-State Property. Gains from the sale of property located in

MI-1040.

another state are not subject to tax and losses are not deductible.

Rounding Off

Part 3

Follow the instructions on the MI-1040D to exclude portions of

Show money items as whole dollar amounts. Round down

capital gains or losses that cannot be taxed by Michigan.

amounts less than 50 cents. Round up amounts of 50 through 99

cents.

Note: When figuring which negative number is smaller, treat both

numbers as if they were positive.

Identification

Part 4

Be sure to enter your name(s) and Social Security number(s) at the

top of this schedule.

Part 4 is a continuation of short-term capital gains and losses listed

on line 1. Attach additional sheets if more space is needed. Enter

Parts 1 and 2

totals from additional sheets and line 20 on line 2.

Federal Information

Part 5

Complete columns A, B, C, and D from corresponding columns a,

b, c and f on your U.S. Schedule D. If you need more space for

Part 5 is a continuation of long-term capital gains and losses listed

items listed on line 1, continue on page 2, Part 4. Line 8 continues

on line 8. Attach additional sheets if more space is needed. Enter

on page 2, Part 5.

totals from additional sheets and line 22 on line 9.

Michigan Gain or Loss

Part 6

In Michigan columns E and F enter the portion of federal gain and

Part 6 is similar to the Capital Loss Carryover Worksheet from

loss subject to Michigan income tax.

the U.S. 1040D instructions. Follow the instructions on the

Section 271. To apportion under Section 271, multiply the gain or

MI-1040D. Enter federal figures in column Y and Michigan

loss in column D by the number of months the property was held

figures in column Z. On line 23 , column Z, enter the same figure

after September 30, 1967. Divide the result by the total number of

you entered in column Y.

months held. Enter the result in the Michigan gain or loss column

(E or F). For the purpose of this computation, the first month may

be excluded if acquisition took place after the 15th, and the last

month may be excluded if disposal took place before the 15th.

Gain from installment sales made before October 1, 1967 must

show the federal gain in column D and zero in Michigan

column F. Gains from installment sales made after October 1,

1967 are subject to Michigan tax but may be apportioned under

Section 271.

Instructions For Completing Schedule Mi-1040d - Michigan Department Of Treasury

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