Looking for a Michigan Department Of Treasury Forms And Templates? Download it for free!

The disqualifier that is based on compensation and/or share of

This reduction is based on the officer/shareholder with the

business income attributable to an owner or officer is applied

largest allocated income. Enter the allocated income of the

shareholder or officer with the highest allocated income after

on a combined basis. All items paid or allocable to a single

individual will be combined when calculating the disqualifier,

loss adjustment, even if that figure is $160,000 or less.

regardless of the number of entities from which the amounts

If loss adjustment is successfully applied to fully or partially

may be derived.

cure a shareholder’s allocated income disqualifier, enter on line

NOTE: This is a change from the comparable calculation in

12 the number from Form 4895, line 12

MBT. For more information on UBGs, see the “Supplemental

Line 13: For a taxpayer whose shareholders or officers all have

Instructions for UBGs” in Form 4890.

allocated income (after loss adjustment) of $160,000 or less,

In addition, a disqualifier applies to a UBG if such disqualifier

enter 100 percent.

applies to any member of that UBG. For example, a UBG

All other taxpayers, see the table at the bottom of this

is disqualified from taking the SBAC if that UBG includes a

worksheet to determine what percent to enter on this line.

member for which the allocated income after loss adjustment

of a shareholder is $180,000. The reduction percentages for

Line 14: All taxpayers must complete this line.

the credit also apply to the entire group if they apply to one

If gross receipts from line 1 are $19,000,000 or less, carry the

member.

amount on line 14 to Form 4946, line 28.

Line-by-Line Instructions

Reduction Based on Gross Receipts

Lines not listed are explained on the form.

Complete this section if gross receipts are more than

$19,000,000 but not more than $20,000,000.

Name and Account Number: Enter name and account number

as reported on page 1 of the MBT Annual Return (Form 4567).

Line 17: For a result less than zero, enter zero.

UBGs: Complete one form for the group. Enter the Designated

Do not include a completed worksheet as part of the tax

Member (DM) name in the Taxpayer Name field and the DM

return filing.

account number in the Federal Employer Identification Number

(FEIN).

Line 1: Enter amount from Form 4567, line 12. For periods less

than 12 months, enter annualized gross receipts. For guidance,

see the “Annualizing” section at the beginning of these

instructions.

UBGs: All UBG filers will use the amount from Form 4567,

line 12. For periods less than 12 months, line 10 reflects the

annualized amount for the purpose of completing Form 4893.

Adjusted Business Income

Line 3: Enter business income from Form 4946, line 10.

NOTE: The adjusted business income (ABI) disqualifier is

based on annualized ABI, but the credit calculations performed

here are based on actual ABI.

UBGs: Enter business income for all members from Form

4946, line 10.

Line 4: Enter, to the extent deducted in determining federal

taxable income, a carryback or carryover of a capital loss from

Schedule D of federal Form 1120. Enter as a positive number.

UBGs: Combine for all members all carryback or carryover

of a capital loss, to the extent deducted in determining federal

taxable income, and enter on line 4. Enter as a positive number.

Line 9: If loss adjustment is successfully applied to cure an

ABI disqualifier, ignore the apparent disqualification on line 9

of the worksheet and proceed with calculating the SBAC on the

remainder of the worksheet.

Small Business Alternative Credit Calculation

Line 12: The Small Business Alternative Credit is reduced

if a shareholder or an officer has allocated income after loss

adjustment of more than $160,000 but not more than $180,000.

Form 4946 - Schedule Of Corporate Income Tax Liability For A Michigan Business Tax Filer Page 8

Related Articles

Related forms

Related Categories