Form 4594 - Michigan Farmland Preservation Tax Credit

4594, Page 5

enrolled land in the first year under the agreement. If average

of the primary copy, enter the total of all allocated credits from

receipts are more than five times property taxes in the first

column 19F from all copies, which must equal line 29.

year, this formula may be used.

Enter amounts in whole dollars only (no cents).

line 9: Enter each of the years immediately preceding the

line 19:

claim year. Enter the most current year in column A.

• Column a: Enter the farmland preservation agreement

number assigned by the MDA. Agreement (or contract) number

line 10: Enter the property taxes for each year reported

is found in the lower-right corner of each agreement. The first

on line 9 that are attributable to land enrolled on or after

January 1, 1978. Do not include property taxes on land enrolled

two numbers are the county where the property is located. The

middle set of numbers is the actual contract number. The final

before January 1, 1978, or property taxes on structures or any

other lands not enrolled in an FDRA.

six numbers are the year of expiration, for example, 123113

(December 31, 2013). The contract number retains its original

line 12: Enter the agricultural gross receipts for the tax years

series throughout the term of the agreement. However, a letter

immediately preceding the tax year of this claim. Agricultural

may be added to indicate that the agreement was split into

gross receipts are receipts from the business of farming as

multiple agreements. The final six numbers change when the

defined in the IRS Regulation 1.175-3.

agreement is shortened or extended. Always use the contract

number on the most recently recorded agreement, and attach

If the taxpayer’s farm operation was incorporated during this

a copy of each 2013 tax statement that corresponds to the

five-year period and the ownership before and after date of

agreement number listed. The expiration date may never be

incorporation is identical, report gross receipts for all five tax

earlier than the year of the return being prepared.

years. If the ownership changed, enter gross receipts only for

• Column B: For each agreement, check the box if paid

those tax years since incorporation.

tax receipts for 2013 or 2014 are attached. The Farmland

PART 2: TAXES THAT CAN BE CLAIMED FOR CREDIT

Preservation Tax Credit will be issued jointly to the taxpayer

AND ALLOCATION TO EACH AGREEMENT

and the treasurer for the county where the property is located if

the receipts are not attached.

For taxpayers with four or fewer agreements: Using the

instructions below for line 19, columns A through D, complete

NOTE: In addition to paid tax receipts as described above,

lines 19A through 19D for each agreement, then enter in

attach copies of 2013 property tax statements. Be sure the

line 20D the total of column 19D. Using the total in

corresponding agreeent number is on each tax statement.

line 20D, complete line 19E for each agreement. In line 20E,

• Column C: Enter the date each agreement was entered into

enter the total of all percentages from column 19E, which must

(MM-DD-yyyy).

equal 100 percent.

• Column D: Enter the total amount of tax on land and

structures under agreement from tax statements. Do not

Then complete lines 21 through 29. Using the total credit

reported on line 29, return to the table in line 19 and complete

include penalties, interest, or special assessments. Collection

line 19F for each agreement. Finally, in line 20F, enter the

fees up to 1% of taxes may be included. If the taxpayer is a

total of all allocated credits from column 19F, which must

joint owner, enter only the taxpayer’s share of taxes.

equal line 29.

NOTEs: If the property tax statement includes taxes for land

not covered by an FDRA, the taxes reported in column D

Enter amounts in whole dollars only (no cents).

must be reduced accordingly. The amount of taxes that cannot

For taxpayers with five or more agreements: Using the

be claimed must be determined by the local assessor’s office

instructions below for line 19, columns A through D, complete

and submitted on his or her official letterhead. The 1 percent

lines 19A through 19D on the primary copy of the form with

collection fee may be included. Do not include penalties,

data from four agreements. Use additional copies of page 1

interest, or special assessments.

of this form to report the remaining agreements. On each

If the property tax statement includes taxes for land on more

additional copy of page 1 that is used:

than one agreement, the taxes reported in column D must be

• Enter the taxpayer’s name on line 2 and FEIN/TR number

separated according to land in each agreement. The local

on line 5.

assessor will be able to determine what the breakdown is

• Leave all other fields (including line 20) blank, except line 19.

based on the legal descriptions of the land enrolled under each

• Complete lines 19A through 19D for each agreement.

agreement.

Then enter in line 20D of the primary copy of this form (the

line 20: If multiple copies of page 1 of Form 4594 are included,

copy with all applicable fields filled) the total of columns 19D

leave line 20 blank on all copies except the primary copy (see

above, instructions for Part 2). Lines 20D, 20e, and 20F on the

from all copies. Using the total in line 20D of the primary copy,

primary copy must reflect totals for all copies of the form.

complete line 19E for each agreement on all copies. In line 20E

of the primary copy, enter the total of all percentages from

line 21: Taxes on land enrolled after December 31, 1977. If

columns 19E from all copies, which must equal 100 percent.

qualified under one of the gross receipts formulas (line 13 or

line 18), enter the taxes from column D on land and structures

Then complete lines 21 through 29. Using the total credit

enrolled after December 31, 1977. otherwise, enter zero.

reported on line 29, return to the table in line 19 and complete

line 19F for each agreement on all copies. Finally, in line 20F

Form 4594 - Michigan Farmland Preservation Tax Credit - 2014 Page 5

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