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• Column D: Enter the apportionment percentage from Form

Keep in your files a separate worksheet with the appropriate

4567, line 11c. If not apportioning, enter 100 percent. Enter

information regarding each depreciable mobile tangible asset

acquired in a tax year beginning after 1999 and prior to 2008,

the same apportionment percentage for each row completed.

• Column F: Subtract column E from column B for each row.

and sold or otherwise disposed of during the tax year. Sum the

total gross proceeds and gain or loss for all disposed assets

If column E is a loss, add its positive value to column B for

acquired in the same taxable year. Enter in this form only

each appropriate row. A loss in column E will increase the

the total sum of gross proceeds and gain or loss grouped by

recapture base.

taxable year the assets were acquired. Use one row per group

Line 2: Mobile tangible assets are all of the following:

of disposed assets acquired in the same taxable year. Start from

the earliest acquisition year.

• Motor vehicles that have a gross vehicle weight rating of

• Column D: Subtract figures in column C from figures in

10,000 pounds or more and are used to transport property or

persons for compensation;

column B for each row. If column C is a loss, add its positive

• Rolling

value to column B for each appropriate row. A loss in

stock

(railroad

freight

passenger

cars,

locomotives or other railcars), aircraft, and watercraft

column C will increase the recapture.

used by the owner to transport property or persons for

• Column E: Enter the apportionment percentage from Form

compensation or used by the owner to transport the owner’s

4567, line 11c. Enter the same apportionment percentage for

property for sale, rental, or further processing;

each row you have filled columns A through D.

• Equipment used directly in completion of, or in construction

• Column F: Multiply figures in column D by column E for

contracts for, the construction, alteration, repair, or

each row.

improvement of property.

Line 3: For depreciable tangible assets other than mobile

For depreciable mobile tangible assets that were acquired in

tangible assets acquired in tax years beginning after 1996

a tax year beginning after 1999 and prior to 2008, and were

and prior to 2008, that were eligible for the ITC in tax years

sold or otherwise disposed of during the tax year, enter the

beginning after 1999 and prior to 2008, and were transferred

following:

outside Michigan during the tax year, enter the following:

• Column A: Separate the depreciable mobile tangible assets

• Column A: Separate the depreciable tangible assets other

that were disposed of during the filing period by the tax year

than mobile tangible assets that were transferred out of

in which they were acquired. Use a separate row for each

Michigan during the filing period by the tax year in which

acquisition year. Enter the tax years of acquisition (end dates

they were acquired. Use a separate row for each acquisition

only) in chronological order, starting with the first tax year

year. Enter the tax years of acquisition (end dates only)

beginning after 1999. An acquisition year for which there

in chronological order, starting with the first tax year

were no dispositions of depreciable mobile tangible assets

beginning after 1999. An acquisition year for which there

during the filing period may be omitted. However, do not

were no transfers of depreciable tangible assets out of

omit the acquisition year of depreciable mobile tangible

Michigan during the filing period may be omitted.

assets that have been sold on an installment method if gains

• Column B: Total sum of adjusted federal basis from all

attributable to installment payments received during the

depreciable tangible assets acquired in the same taxable year

current filing period must be reported.

and transferred out of Michigan during the filing period.

• Column B: Total gross proceeds from all depreciable mobile

Keep in your files a separate worksheet with the appropriate

tangible assets that were acquired in the same taxable year

and disposed of during the filing period. If a qualifying asset

information regarding each depreciable tangible asset other than

mobile tangible assets acquired in tax years beginning after 1999

was sold on an installment sale in a prior filing period, the

and prior to 2008, that were eligible for the ITC in tax years

entire sale price was reported for recapture purposes in the

beginning after 1999 and prior to 2008, and were transferred

year of sale. Therefore, if a payment was received on that

installment sale in the current filing period, do not report

outside Michigan during the tax year. Sum the total adjusted

federal basis for all such transferred assets acquired in the same

that amount as gross proceeds for this period. See Column

taxable year. Enter in this form only the total sum of adjusted

C, however, with respect to the gain from that installment

federal basis grouped by taxable year the assets were acquired.

payment.

Use one row per group of such transferred assets acquired in the

• Column C: Net total gains/losses reflected in federal

same taxable year. Start from the earliest taxable year.

taxable income from all depreciable mobile tangible assets

PART 2: CALCULATION OF SBT ITC RECAPTURE RATES

that were acquired in the same taxable year and disposed

of during the filing period. Report also in column C any

Recapture rates can be calculated using any of 3 methods

described in the “Method Summary Table” below. The Table

gain reflected in federal taxable income that is attributed

highlights the methods’ pros and cons. Choose your method,

to an installment payment received during the current

MBT filing period, from a prior installment sale of an

and follow the appropriate instructions to calculate the rates on

line 4, column E.

asset that was of a type and acquisition date covered by

NOTE: Whichever method used, the calculated effective

line 2. For property placed in service prior to January 1,

2008, gain reflected in federal taxable income is equal to

recapture rate of SBT ITC by year cannot be higher than the

figure calculated under Method A for any year.

the gain reported for federal purposes.

142

Form 4585 - Michigan Business Tax Investment Tax Credit Recapture From Sale Of Assets Acquired Under Single Business Tax - 2013 Page 4

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