Instructions For Form C-8043 - Michigan Sbt Statutory Exemption Schedule printable pdf download

Instructions for Form C-8043,

Statutory Exemption Schedule

Purpose: To compute the allowable statutory

Line 5. Enter the amount from Form C-8000KC, SBT

exemption.

Schedule of Shareholders and Officers, line 5.

Corporations claiming a statutory exemption or a

Note: For most filers, the statutory exemption is

small business credit must complete Form C-8000KC,

available only if business income is less than $67,500.

to determine compensation and director fees of all

For most corporations, the statutory exemption is

shareholders. S Corporations and professional

available only if the sum of business income, federal

corporations must use Form C-8000KC to determine

loss carryover and carrybacks and compensation/

qualified shareholders for the additional exemption.

director fees of all shareholders is less than

$67,500.

Line 7, Statutory Exemption. Enter $45,000 unless

the filer is a member of a controlled group. If a filer is

For purposes of computing the statutory exemption

a member of a controlled group and is claiming an

and the small business credit, a member of an LLC is

allocated statutory exemption, attach Form C-8009,

treated as a partner if the LLC is taxed as a

SBT Allocation of Statutory Exemption, Standard

partnership. For purposes of computing the statutory

Small Business Credit and Alternate Tax for Members

exemption only, a member of an LLC is treated as a

of Controlled Groups, to the SBT return. A controlled

shareholder if the LLC is taxed as a corporation.

group is entitled to only one statutory exemption, which

The statutory exemption cannot be used to increase a

is allocated on Form C-8009. Controlled groups must

business loss to the next year or to offset adjusted tax

enter the amount from Form C-8009, line 4.

base, as determined on line 36 of Form C-8000, Single

Lines 8 through 10. Complete these lines to increase the

Business Tax Annual Return, before reporting the use of

statutory exemption for the number of qualified partners

the loss carryovers on Form C-8000, line 37. An unused

or shareholders. Enter the amount from Form C-8000KP,

statutory exemption cannot be carried forward.

SBT Schedule of Partners, line 5, or the amount from

The statutory exemption will be reduced by $2 for each

Form C-8000KC, line 4.

$1 that line 6 exceeds the amount of the exemption on

Note: The increased statutory exemption is only

line 13.

available to S Corporations and professional

Line-By-Line Instructions

corporations. It is not available to other types of

corporations.

Lines not listed are explained on the form.

Lines 11 and 12. Complete these lines if business

Line 2, Account Number. Enter the same account

activity existed for a period of less than 12 months.

number used on page 1 of the annual return.

Line 16, Allowable Statutory Exemption. Enter here

Line 3, Business Income. Enter business income from

and on Form C-8000, Single Business Tax Annual

Form C-8000, line 11.

Return, line 39. If line 16 is negative, enter zero.

Individuals, Fiduciaries, Partnerships and Limited

Attach this schedule to the return.

Liability Companies may average their income before

computing their statutory exemption. If filers choose to

average their business income, they must complete

Form C-8000G, SBT Statutory Exemption/Business

Income Averaging. Enter the amount from Form

C-8000G, line 9, here. Check the box on Form C-8000,

line 40a, to indicate that income has been averaged.

Note: Business income averaging is used only to

figure the statutory exemption. Do not use it as the

current year business income on any form.

Instructions For Form C-8043 - Michigan Sbt Statutory Exemption Schedule

Related Articles

Related forms

Related Categories