Form 4580 - Michigan Business Tax Unitary Business Group Combined Filing Schedule For Standard Members - 2012 Page 12
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19supplied to its clients. Staffing company means a taxpayer whose
gross receipts for a member that is a limited dividend housing
business activities are included in Industry Group 736 under the
association that owns and operates a Qualified Affordable
Standard Industrial Classification (SIC) Code as compiled by the
Housing Project (QAHP).
United States Department of Labor.
Public Act (PA) 168 of 2008 provides for a deduction from the
Payments to a staffing company by a client do not constitute
modified gross receipts and apportioned business income tax
purchases from other firms.
bases for a QAHP. (A deduction from the apportioned business
income tax base also is available. See below.)
Line 22: For taxpayers that fall under SIC major groups 15
(Building Construction General Contractors and Operative
Qualified Affordable Housing Project means a person that
Builders), 16 (Heavy Construction Other Than Building
is organized, qualified, and operated as a limited dividend
Construction Contractors), and 17 (Construction Special
housing association that has a limitation on the amount of
Trade Contractors) who do not qualify for the Small Business
dividends or other distributions that may be distributed to its
Alternative Credit under MCL 208.1417, the following
owners in any given year and has received funding, subsidies,
payments are considered “purchases from other firms:”
grants, operating support, or construction or permanent
funding through one or more public sources.
• Payments to subcontractors for a construction project, under
a contract specific to that project, and
A limited dividend housing association is organized and
• To the extent not deducted as “inventory” and “materials
qualified pursuant to Chapter 7 of the State Housing
Development Authority Act (MCL 125.1491 et seq).
and supplies,” payments for materials deducted as purchases in
determining the cost of goods sold for the purpose of calculating
If these criteria are satisfied, a QAHP may deduct from its
total income on the taxpayer’s federal income tax return.
modified gross receipts, its gross receipts attributable to
the residential rental units in Michigan it owns multiplied
NOTE: For purposes of this subtraction, the analysis of whether
by a fraction, the numerator of which is the number of rent
a person in a UBG does not qualify for a Small Business
Alternative Credit should be based on whether the group as
restricted units in Michigan owned by that QAHP and the
a whole qualifies. However, for purposes of the SIC code
denominator of which is the number of all residential rental
requirement, it is sufficient that the UBG member that made the
units in Michigan owned by the project. This deduction
payments listed above be included in SIC codes 15, 16, or 17.
is reduced by the amount of limited dividends or other
distributions made to the owners of the project. Amounts
Persons included in SIC codes 15, 16, and 17 include
received by the management, construction, or development
general
contractors
(of
residential
buildings
including
company for completion and operation of the project and
single-family
homes;
industrial,
commercial,
and
rental units do not constitute gross receipts for purposes of
institutional buildings; bridges, roads, and infrastructure;
the deduction.
etc.), operative builders, and trade contractors (such
MCL 208.1201(8) governs the termination of this deduction.
as electricians, plumbers, painters, masons, etc.). See
for a more
Line 24a: Gross receipts attributable to residential rentals in
complete list.
Michigan do not include amounts received by the management,
A subcontractor is an Individual or entity that enters into a
construction, or development company for completion and
contract and assumes some or all of the obligations of a person
operation of the project and those rental units.
included in SIC codes 15, 16, and 17 as set forth in the primary
contract specific to a project. Thus, payments to an independent
Line 24b: Rent restricted unit means any residential rental
unit that has a rental rate restricted in accordance with IRC §
contractor for general labor services not specific to a particular
42(g)(1) as if it was a qualified low-income housing project,
construction contract do not constitute purchases from other
or that receives rental assistance from Housing and Urban
firms. However, payments made to a subcontractor for services
Development (HUD) section 8 subsidies, HUD housing
and materials provided under a contract specific to a particular
assistance program subsidies, U.S. Department of Agriculture
construction project (such as the construction of commercial
rural housing programs, or from any of the programs described
property at 2400 Main Street) do constitute purchases from
in MCL 208.1203(8)(b).
other firms. There is no requirement that the subcontractors to
whom such payments are made be licensed.
Line 24c: This includes rent restricted and unrestricted
residential rental units owned by the QAHP in Michigan.
The taxpayer bears the burden to prove it is entitled to a
deduction in computing its tax liability. It is contemplated that
Line 25: If the member is licensed under Article 25 (Real
good business practice would include documentation such as
Estate Brokers and Salespersons) or Article 26 (Real Estate
a written contract that would support a deduction from gross
Appraisers) of the Occupational Code [MCL 339.2501 to
receipts for payments to subcontractors as purchases from
339.2518 and 339.2601 to 339.2637], enter payments made to
other firms. The supporting information for payments to a
independent contractors licensed under Articles 25 or 26.
subcontractor could be incorporated into the contract for the
specific project or memorialized in a separate contract with
Line 26: For a person classified under the 2002 North American
a subcontractor specifying the project to which the costs
Industrial Classification System (NAICS) Number 484, as
compiled by the United States Office of Management and
pertain.
Budget, that does not qualify for a credit under Section 417, enter
Line 24: On lines 24a through 24g, calculate a deduction from
116
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form 4580 - Michigan Business Tax Unitary Business Group Combined Filing Schedule For Standard Members - 2013
Financial
Form 4580 - Business Tax Unitary Business Group Combined Filing Schedule For Standard Members - 2014
Financial
Form 4910 - Corporate Income Tax Unitary Business Group Combined Filing Schedule For Financial Institutions - 2012
Financial
Form 4910 - Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule For Financial Institutions - 2012
Financial
Form 4752 - Business Tax Unitary Business Group Combined Filing Schedule For Financial Institutions - 2012
Financial
Form 4752 - 2012 Michigan Business Tax Unitary Business Group Combined Filing Schedule For Financial Institutions
Financial
Form 4752 - 2009 Michigan Business Tax Unitary Business Group Combined Filing Schedule For Financial Institutions
Financial
Form 4752 Draft - Michigan Business Tax Unitary Business Group Combined Filing Schedule For Financial Institutions - 2009
Financial
Related Categories
Parent category: Financial