Form 4580 - Michigan Business Tax Unitary Business Group Combined Filing Schedule For Standard Members - 2013 Page 13
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18activities, and sources in the regular course of the member’s
WORKSHEET –
trade or business, including the following:
EXCESS MGR TAX COLLECTED
• All income from tangible and intangible property if the
A. Pro forma apportionment percentage
acquisition, rental, management, or disposition of the
from Form 4580, Part 2A, line 16a .....
%
property constitutes integral parts of the member’s regular
B. Modified gross receipts from
trade or business operations.
Form 4580, Part 2A, line 27. If MGR
• Gains or losses incurred in the member’s trade or business
00
is less than zero, enter zero .................
from stock and securities of any foreign or domestic
C. Apportioned MGR tax base.
00
corporation, and dividend and interest income.
Multiply line B by line A ....................
• Income derived from isolated sales, leases, assignment,
D. Pro forma MGR Tax before credits.
Multiply line C by 0.8% (0.008) .........
licenses,
divisions,
or
other
infrequently
occurring
00
E. Enrichment prohibition, amount from
dispositions, transfers, or transactions involving property
Form 4580, Part 2A, line 28 ...............
00
if the property is or was used in the member’s trade or
F. Excess MGR Tax collected.
business operation.
If line D is less than line E, enter the
• Income derived from the sale of a business.
difference. Otherwise, enter zero.
NOTE: Personal investment income, gains from the sale of
Carry amount to Form 4580, Part 2A,
line 29 .................................................
property held for personal use and enjoyment, or other assets
00
not used in a trade or business, and any other income not
specifically derived from a trade or business that is earned,
Line 30: Business income means that part of federal taxable
received, or otherwise acquired by an Individual, an estate,
income derived from business activity. For MBT purposes,
federal taxable income means taxable income as defined in
or a Trust or Partnership organized or established exclusively
IRC § 63, except that federal taxable income shall be calculated
for estate or gift planning purposes, are not included in the
as if section 168(k) [as applied to qualified property placed in
Business Income Tax base. This exclusion only applies to the
specific types of persons identified above. Investment income
service after December 31, 2007] and IRC § 199 were not in
and any other types of income earned or received by all other
effect. For a Partnership or S Corporation (or LLC federally
types of persons not specifically referenced must be included in
taxed as such), business income includes payments and items of
the business income of the member.
income and expense that are attributable to business activity of
the Partnership or S Corporation and separately reported to the
IMPORTANT: If business activity is protected under Public
partners or shareholders.
Law (PL) 86-272 for any member of the UBG, then the member
must claim protection by filing the MBT Tax Schedule of
Use the Business Income Worksheet (Worksheet 4746) in Form
Business Activity Protected Under Public Law 86-272 (Form
4600 to calculate business income. Attach Worksheet 4746
4586) (if member is the DM) or the MBT Schedule of Business
to the return. The worksheet will calculate business income
Activity for Non-Designated Members of a Unitary Business
as defined by law in most circumstances. Taxpayers and tax
Group Protected Under Public Law 86-272 (Form 4581) (if
professionals are expected to be familiar with uncommon
member is not the DM) and reporting its individual activity.
situations within their experience, which produce business
Unless all members of the UBG have PL 86-272 protection, a
income not identified by specific lines on the worksheet, and
member claiming protection must complete lines 30 through 45i.
report that amount on the most appropriate line. Treasury may
If all members of the UBG are claiming PL 86-272 protection,
adjust the figure resulting from Worksheet 4746 to account
leave lines 30 through 45i blank.
properly for such uncommon situations.
So long as one member of a UBG has nexus with Michigan
For an organization that is a mutual or cooperative electric
and exceeds the protections of PL 86-272, all members of the
company exempt under IRC § 501(c)(12), business income
UBG, including members protected under PL 86-272, must
equals the organization’s excess or deficiency of revenues
be included when calculating the UBG’s Business Income
over expenses as reported to the federal government by those
Tax base and apportionment formula. (In other words, PL 86-
organizations exempt from the federal income tax under the
272 will only remove business income from the apportionable
IRC, less capital credits paid to members of that organization,
less income attributed to equity in another organization’s net
Business Income Tax base when all members of the UBG are
protected under PL 86-272.) The inclusion of the business
income, and less income resulting from a charge approved by a
income of members that fall under PL 86-272 in the tax base
state or federal regulatory agency that is restricted for a specified
of the UBG and the subsequent apportionment of such income
purpose and refundable if it is not used for the specified purpose.
does not constitute taxation upon those PL 86-272 members.
For a tax-exempt person, business income means only that
Rather, this method is required for properly determining the
part of federal taxable income (as defined for MBT purposes)
Michigan income of the UBG.
derived from unrelated business activity.
Line 31: Enter any interest income and dividends from
For an Individual or an estate, or for a Partnership or Trust
bonds and similar obligations or securities of states other than
organized exclusively for estate or gift planning purposes,
Michigan and their political subdivisions in the same amount
business income is that part of federal taxable income (as
that was excluded from federal taxable income (as defined
defined for MBT purposes) derived from transactions,
for MBT purposes). Include only the income derived from
117
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