Form 4580 - Michigan Business Tax Unitary Business Group Combined Filing Schedule For Standard Members - 2013 Page 12
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18Line 24c: This includes rent restricted and unrestricted
The taxpayer bears the burden to prove it is entitled to a
residential rental units owned by the QAHP in Michigan.
deduction in computing its tax liability. It is contemplated that
good business practice would include documentation such as
Line 25: If the member is licensed under Article 25 (Real
a written contract that would support a deduction from gross
Estate Brokers and Salespersons) or Article 26 (Real Estate
receipts for payments to subcontractors as purchases from
Appraisers) of the Occupational Code [MCL 339.2501 to
other firms. The supporting information for payments to a
339.2518 and 339.2601 to 339.2637], enter payments made to
subcontractor could be incorporated into the contract for the
independent contractors licensed under Articles 25 or 26.
specific project or memorialized in a separate contract with
Line 26: For a person classified under the 2002 North American
a subcontractor specifying the project to which the costs
Industrial Classification System (NAICS) Number 484, as
pertain.
compiled by the United States Office of Management and
Line 24: On lines 24a through 24g, calculate a deduction from
Budget, that does not qualify the SBAC under Section 417, enter
gross receipts for a member that is a limited dividend housing
the payment, made on or after July 12, 2011, to subcontractors
association that owns and operates a Qualified Affordable
to transport freight by motor vehicle under a contract specific to
Housing Project (QAHP).
that freight to be transported by motor vehicle.
Public Act (PA) 168 of 2008 provides for a deduction from the
Attach a letter to explain the activity that qualifies for this
modified gross receipts and apportioned business income tax
subtraction and the date of the payment. Include your NAICS
bases for a QAHP. (A deduction from the apportioned business
code.
income tax base also is available. See below.)
Enter on this line the gross receipts included on line 17, which
Qualified Affordable Housing Project means a person that
result from the agricultural activity of a person whose primary
is organized, qualified, and operated as a limited dividend
activity (i.e., more than 50 percent of gross receipts) is the
housing association that has a limitation on the amount of
production of agricultural goods.
dividends or other distributions that may be distributed to its
Enter on this line the gross receipts included on line 17 which
owners in any given year and has received funding, subsidies,
result from the production of oil and gas if that production of
grants, operating support, or construction or permanent
oil and gas is subject to the Severance Tax on Oil or Gas, 1929
funding through one or more public sources.
PA 48.
A limited dividend housing association is organized and
Line 28: Enter amount of the MBT Modified Gross Receipts
qualified pursuant to Chapter 7 of the State Housing
(MGR) Tax collected in the tax year.
Development Authority Act (MCL 125.1491 et seq).
MCL 208.1203(5) permits new motor vehicle dealers licensed
If these criteria are satisfied, a QAHP may deduct from its
under the Michigan Vehicle Code, PA 300 of 1949, MCL 257.1
modified gross receipts, its gross receipts attributable to
to 257.923, and dealers of new or used personal watercraft to
the residential rental units in Michigan it owns multiplied
collect the MGR Tax in addition to the sales price. The statute
by a fraction, the numerator of which is the number of rent
states that the “amount remitted to the Department for the
restricted units in Michigan owned by that QAHP and the
[Modified Gross Receipts Tax] ... shall not be less than the
denominator of which is the number of all residential rental
stated and collected amount.” Therefore, the entire amount
units in Michigan owned by the project. This deduction
of the MGR Taxes stated and collected by new motor vehicle
is reduced by the amount of limited dividends or other
dealers and new or used personal watercraft dealers must be
distributions made to the owners of the project. Amounts
remitted to Treasury. There should be no instance in which
received by the management, construction, or development
a dealer collects amounts of the MGR Tax from customers
company for completion and operation of the project and
in excess of the amount of MGR taxes remitted to Treasury.
rental units do not constitute gross receipts for purposes of
Eligible taxpayers that elect to separately collect the MGR
the deduction.
Tax from customers in addition to sales price may include the
MCL 208.1201(8) governs the termination of this deduction.
collected tax as part of their estimated payments.
NOTE: Only new motor vehicle dealers and dealers of new or
Line 24a: Gross receipts attributable to residential rentals in
used personal watercraft are permitted to separately itemize
Michigan do not include amounts received by the management,
and collect a tax imposed under the MBT Act from customers
construction, or development company for completion and
in addition to sales price, and that authority is limited to only
operation of the project and those rental units.
the MGR Tax imposed and levied under MCL 208.1203. The
Line 24b: Rent restricted unit means any residential rental
statute does not authorize separate itemizing and collection of
unit that has a rental rate restricted in accordance with IRC §
the Business Income Tax or surcharge by any person.
42(g)(1) as if it was a qualified low-income housing project,
Line 29: A member that is a dealer of personal watercraft or
or that receives rental assistance from Housing and Urban
new motor vehicles that collected MGR Tax from customers
Development (HUD) section 8 subsidies, HUD housing
by separate statement on the invoice during the tax year, as
assistance program subsidies, U.S. Department of Agriculture
entered in line 28, should complete the following worksheet to
rural housing programs, or from any of the programs described
determine excess MGR Tax collected.
in MCL 208.1203(8)(b).
116
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