Form 4891 - Michigan Corporate Income Tax Annual Return

line 17 of all members of the group, and enter the sum here.

Receipts include, but are not limited to:

• Receipts (sales price) from the sale of assets used in a

Line 10a: Enter the amount of total, unapportioned gross

receipts received by the taxpayer. DO NOT include flow-

business activity

• Sale of products

through gross receipts on this line.

• Services performed

Gross receipts means the entire amount received by the

• Gratuities stipulated on a bill

taxpayer from any activity, whether in intrastate, interstate,

or foreign commerce, carried out for direct or indirect gain,

• Sales tax collected on the sale of tangible personal property

benefit, or advantage to the taxpayer or to others, with certain

• Dividend and interest income

exceptions. Use the checklist as the line 10b instructions as a

• Gross commissions earned

guide to be sure receipts have been totaled correctly. Taxpayers

• Rents

and tax professionals are expected to be familiar with

uncommon situations within their experience, which produce

• Royalties

gross receipts not identified by the checklist.

• Professional services

UBGs: RECENT STATUTORY CHANGE: Enter on this

• Sales of scrap and other similar items

line the entire amount of gross receipts of all members in the

• Receipts from the production of oil and gas

group after eliminations. For each member reported on Form

• Client reimbursed expenses not obtained in an agency

4897, calculate the member’s gross receipts net of eliminations

as follows: from the figure reported on Form 4897, line 19a,

capacity

• Gross proceeds from intercompany sales.

subtract the amount reported on Form 4897, line 19b. Combine

the resulting gross receipts net of eliminations amounts of all

Receipts exclude:

members of the group, and enter the total here. UBG members

• Proceeds from sales by a principal that are collected in

reporting a period of less than 12 months with this group return

must annualize their gross receipts figure net of eliminations

an agency capacity solely on behalf of the principal and

on a member by member basis. Use each member’s number of

delivered to the principal

months reported in the group’s tax year. Once all applicable

• Amounts received as an agent solely on behalf of the

members’ gross receipts net of elimination are annualized,

principal that are expended by the taxpayer under certain

carry the sum of all gross receipts net of elimination to line

circumstances

10a.

• Amounts excluded from gross income of a foreign

Line 10b: Enter the imputed gross receipts from all unitary

corporation engaged in the international operation of

or non-unitary FTEs from which the taxpayer receives a

aircraft under section 883(a) of the Internal Revenue Code

distributive share of income. EXCEPTION: Do not include

• Amounts received by an advertising agency used to acquire

imputed gross receipts from any FTE in which the taxpayer is

advertising media time, space, production, or talent on

a non-unitary owner, and the FTE has made a valid election to

behalf of another person

file the Michigan Business Tax (MBT) for this tax year.

• Amounts received by a person that manages real property

Single filers, use the “Worksheet on Flow-Through Gross

owned by a client that are deposited into a separate account

Receipts” after the Gross Receipts Checklist (which begins

kept in the name of the client and that are not reimbursed

below) to calculate the imputed apportioned or allocated gross

and are not indirect payments for management services

receipts from each FTE.

provided to that client

• Proceeds from the original issue of stock, equity

UBGs: Enter on this line the entire amount of apportioned

instruments, or debt instruments

gross receipts from all (unitary or non-unitary) FTEs from

• Refunds from returned merchandise

which a member of group receives a distributive share of

income. EXCEPTION: Do not include imputed gross receipts

• Cash and in-kind discounts

from any FTE in which the taxpayer is a non-unitary owner,

• Trade discounts

and the FTE has made a valid election to file MBT for this tax

• Federal, State or local tax refunds

year.

• Security deposits

Add the amount reported on Form 4897, line 20, reported

• Payment of the principal portion of loans

for all members of the group, and enter the sum here. UBG

• Value of property received in a like-kind exchange

members reporting a period of less than 12 months with this

group return must annualize their apportioned FTE gross

• Proceeds from a sale, transaction, exchange, involuntary

receipts figure on a member by member basis.

Use each

conversion, or other disposition of tangible, intangible,

member’s number of months reported in the group’s tax year.

or real property that is a capital asset as defined in section

Once all applicable members’ FTE gross receipts figures are

1221(a) of the Internal Revenue Code or land that qualifies

annualized, carry all members’ figures from line 20 of Form

as property used in the trade or business as defined in

4897 to line 10b.

section 1231(b) of the Internal Revenue Code, less any gain

from the disposition to the extent that gain is included in

Gross Receipts Checklist

federal taxable income

NOTE: This checklist is not intended to be all encompassing.

Form 4891 - Michigan Corporate Income Tax Annual Return - 2014 Page 7

Related Articles

Related forms

Related Categories