2012 MI-8949, Page 3
Instructions for Completing Form MI-8949
When to File
Gain from installment sales made before October 1, 1967, must
show federal gain in column D and zero in column E. Gains
NOTE: Only use this form to adjust your Michigan taxable
from installment sales made after October 1, 1967, are subject
income if you have capital gains or losses attributable to one
to Michigan tax but may be apportioned under Section 271.
of the following:
Distributions from pension, stock bonus or profit-sharing trust
• Gains or losses from sale of certain types of properties
plans that are considered to be long-term capital gains (under
located in other states and/or subject to the allocation and
Section 402 of the Internal Revenue Code) and capital gains
apportionment provisions; or
distributions are not eligible for Section 271 treatment.
• Periods before October 1, 1967 (Section 271 adjustment). If
you file U.S. Schedule D or Form 4797 and you elect to adjust
Sale of Property. Enter the total gain in the federal column.
Enter in the Michigan column the gain or loss from the sale or
under Section 271 of the Michigan Income Tax Act, you must
file the equivalent Michigan forms (MI-1040D or MI-4797).
You must include all items of gain or loss realized during the
• Real property located in Michigan; or
tax year; or
• Tangible personal property located in Michigan at the time
• Gains or losses from the sale or exchange of U.S. obligations
of the sale or owned by a Michigan resident and not subject to
that cannot be taxed by Michigan.
tax in the state where the property is located; or
• Intangible personal property sold by a Michigan resident; or
• Business property apportioned to Michigan on Form MI-1040H.
Michigan Form MI-8949 follows the U.S. Form 8949 and all the
information needed to complete it should be taken from your
U.S. Obligations. Gains from the sale of some U.S. obligations
U.S. Form 8949.
are not subject to tax and losses are not deductible. Enter a zero
Form MI-8949 computations must be carried to Form MI-1040D.
in the Michigan column for gains or losses realized from the
sale of these non-taxable U.S. obligations.
Both forms (MI-8949 and MI-1040D) must be attached to your
Note: Any interest expense and other expenses incurred in the
production of income from U.S. obligations should be offset
Rounding Dollar Amounts
against dividend and interest income from U.S. obligations on
Show money items as whole dollar amounts. Round down
the MI-1040 return. See the instructions for Michigan Schedule
amounts less than 50 cents. Round up amounts of 50 through
1, line 8, in the MI-1040 instruction booklet.
99 cents. Do not enter cents.
Gains from the sale of property
located in another state are not subject to tax and losses are not
Be sure to enter your name(s) and Social Security number(s) at
the top of the form.
Parts 1 and 2
Enter on line 2, the total from line 1 and any additional sheets
listing short-term capital gains and losses. Enter on line 4, the
total from line 3 and any additional sheets listing long-term
Complete columns A, B, and C of the MI-8949 from
capital gains and losses.
corresponding columns a, c, and d of your U.S. Form 8949.
Complete column D by combining the amounts in columns e, f,
and g of your U.S. Form 8949.
Michigan Gain or Loss
For each asset, enter the portion of federal gain and loss subject
to Michigan income tax in column E. If more space is needed
to list assets, attach additional sheets.
Section 271. To apportion under Section 271, multiply the gain
or loss in column D by the number of months the property was
held after September 30, 1967. Divide the result by the total
number of months held. Enter the result in column E. For
the purpose of this computation, the first month is excluded
if acquisition took place after the 15th, and the last month is
excluded if disposal took place on or before the 15th.