Form 4746 - Business Income Worksheet (Page 2 of 2) in pdf

FEIN or TR Number

4746, Page 2

UBG Member FEIN or TR Number

Part 3: PartnershIPs and s corPoratIons (cont.)

20. U.S. Form 1065 or 1120S, Schedule K, Deductions:

a. Charitable contributions ...................................................................................................................................

20a.

b. Section 179 expense .......................................................................................................................................

20b.

c. Deductions related to portfolio income ............................................................................................................

20c.

d. Other deductions, excluding deductions for domestic production activities (IRC § 199). Include an attachment

explaining this line. ..........................................................................................................................................

20d.

21. total deductions. Add lines 20a through 20d ......................................................................................................

21.

22. total business income before adjustments. Subtract line 21 from line 19 .......................................................

22.

23. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC (If adjustment is negative,

enter as negative):

a. Net bonus depreciation adjustment

23a.

(b)

.............................................................................................................

b. Gain/loss adjustment on the sale of an eligible depreciable asset

23b.

(c)

..............................................................

24. Add lines 23a and 23b. If negative, enter as negative..........................................................................................

24.

25. total business income after adjustment. Add lines 22 and 24. Carry amount to Form 4567, line 28, or

Form 4583, line 10. For a member of a UBG, carry amount to Form 4580, Part 2A, line 30 ................................

25.

(a) U.S. Forms 1040D and 4797: Report only gains or losses from assets used in a business activity. Do not include personal gains and losses.

(b) For the computation of business income for Michigan Business Tax (MBT) purposes, persons who claimed a federal special depreciation deduction

under IRC § 168(k) on property first placed in service in 2008 or later must calculate the net bonus depreciation adjustment on those assets as follows:

net bonus depreciation adjustment in tax year equals the total federal depreciation claimed in tax year less the total amount of depreciation that would be

claimed in the federal return in the tax year if the person had elected not to utilize the bonus depreciation allowance at IRC § 168(k). A person may not elect

IRC § 179 expensing of an asset for MBT purposes if it did not elect to use IRC § 179 for that asset federally.

(c) For the computation of business income for MBT purposes, persons who claimed a federal special depreciation deduction under IRC § 168(k) on

property first placed in service in 2008 or later and subsequently disposed of that property in the current tax year must calculate the gain/loss adjustment

on the sale of those assets as follows: gain/loss adjustment in tax year equals the total amount of federal depreciation that would be claimed in the federal

return over the years (starting the year the asset was placed in service and ending on the current tax year) if the person had elected not to utilize the bonus

depreciation allowance at IRC § 168(k) on the property being disposed LESS the total federal depreciation claimed over the years (starting the year asset

was placed in service and ending on the current tax year). A person may not elect IRC § 179 expensing of an asset for MBT purposes if it did not elect to

use IRC § 179 for that asset federally.

Form 4746 - Business Income Worksheet Page 2

Related Articles

Related forms

Related Categories