Form 4908 - Corporate Income Tax Annual Return For Financial Institutions

• Credit card issuer’s reimbursement fees are in Michigan

• Interest charged to customers for carrying debit balances

if the billing address of the credit card holder is located in

on margin accounts without deduction of any costs incurred

Michigan.

in carrying the accounts is in Michigan if the customer is

• Receipts from merchant discounts are in Michigan if the

located in Michigan.

• Interest from loans secured by real property is in Michigan

commercial domicile of the merchant is in Michigan.

• Loan servicing fees are in Michigan under any of the

if the property is located in Michigan, if the property is

located both within Michigan and one or more other states

following circumstances:

and more than 50 percent of the fair market value of the real

○ For a loan secured by real property, if the real property

property is located in Michigan, and if more than 50 percent

for which the loan is secured is in Michigan.

of the fair market value of the real property is not located

○ For a loan secured by real property, if the real property

within any one state but the borrower is located in Michigan.

for which the loan is secured is located both in Michigan

• Interest from loans not secured by real property is in

and in one or more other states and more than 50 percent

Michigan if the borrower is located in Michigan.

of the fair market value of the real property is located in

• Net gains from the sale of loans secured by real property

Michigan.

or mortgage service rights relating to real property are in

○ For a loan secured by real property, if more than 50

Michigan if the property is in Michigan, if the property is

percent of the fair market value of the real property for

located both within Michigan and one or more other states

which the loan is secured is not located within any one

and more than 50 percent of the fair market value of the real

state but the borrower is located in Michigan.

property is located in Michigan, or if more than 50 percent

○ For a loan not secured by real property, the borrower is

of the fair market value of the real property is not located in

located in Michigan.

any one state, but the borrower is located in Michigan.

• Receipts from services are in Michigan if the recipient of the

• Net gains from the sale of loans not secured by real property

services receives all of the benefit of the services in Michigan. If

or any other intangible assets are in Michigan if the

the recipient of the services receives some of the benefit of the

depositor or borrower is located in Michigan.

services in Michigan, the receipts are included in the numerator

• Receipts from the lease of real property are in Michigan if

of the apportionment factor in proportion to the extent that the

the property is located in Michigan.

recipient receives benefit of the services in Michigan.

• Receipts from the lease of tangible personal property are in

• Receipts from investment assets and activities and trading

Michigan if the property is located in Michigan when it is

first placed in service by the lessee.

assets and activities, including interest and dividends, are in

Michigan if the financial institution’s customer is in Michigan.

• Receipts from the lease of transportation tangible personal

If the location of the financial institution’s customer cannot be

property are in Michigan if the property is used in Michigan

determined, both of the following apply:

or if the extent of use of the property in Michigan cannot

○ Interest, dividends, and other income from investment

be determined but the property has its principal base of

operations in Michigan.

assets and activities and from trading assets and

activities, including, but not limited to, investment

UBGs: Carry amount from Form 4910, line 2C, to line 9a, and

securities; trading account assets; federal funds;

the amount from Form 4910, line 3C, to line 9b.

securities purchased and sold under agreements

PART 1: FRANCHISE TAX

to resell or repurchase; options; futures contracts;

The following tax base calculation involves a five-year average

forward contracts; notional principal contracts such

as swaps; equities; and foreign currency transactions

of net capital. Enter data from the current year and four most

are in Michigan if the average value of the assets is

recent CIT and Michigan Business Tax (MBT) tax years to

complete the five-year table. For purposes of this table, treat a

assigned to a regular place of business of the taxpayer

in Michigan. Interest from federal funds sold and

partial year as a full year. If the current and four preceding tax

purchased and from securities purchased under resale

years include any short periods, the years printed in column

agreements and securities sold under repurchase

headings for this part will not apply accurately. For example,

agreements are in Michigan if the average value of

assuming no short periods reported for federal purposes, a

financial institution with a fiscal year-end of August 31 would

the assets is assigned to a regular place of business of

the taxpayer in Michigan. The amount of receipts and

average the net capital for tax years ending August 31, 2010,

other income from investment assets and activities is

August 31, 2011, December 31, 2011, August 31, 2012, and

in Michigan if assets are assigned to a regular place of

August 31, 2013.

business of the taxpayer in Michigan.

Fiscal filers, see the supplemental instructions in Form 4907.

○ The amount of receipts from trading assets and activities,

Line 10: Enter equity capital as of the last day of the filing

including, but not limited to, assets and activities in

period, as computed in accordance with generally accepted

the matched book, in the arbitrage book, and foreign

accounting principles (GAAP). If the financial institution does

currency transactions, but excluding amounts otherwise

not maintain its books and records in accordance with GAAP,

sourced in this section, are in Michigan if the assets are

net capital must be computed in accordance with the books

assigned to a regular place of business of the taxpayer in

and records used by the financial institution, so long as the

Michigan.

Form 4908 - Corporate Income Tax Annual Return For Financial Institutions - 2014 Page 5

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