Michigan Corporate Income Tax Annual Return For Financial Institutions - 2012 Page 14
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30UBGs: In the Name field, enter the name of the DM for
• Receipts from credit card receivables including interest
the financial institutions. Enter the FEIN for the DM of the
and fees or penalties in the nature of interest from credit
financial group.
card receivables and receipts from fees charged to credit card
holders such as annual fees are in Michigan if the billing
Line 3: Enter a brief description of the principal types of
address of the credit card holder is located in Michigan.
financial services in which the taxpayer is engaged.
• Credit card issuer’s reimbursement fees are in Michigan if the
Line 4: Enter the entity’s six-digit North American Industry
billing address of the credit card holder is located in Michigan.
Classification System (NAICS) code. For a complete list of
• Receipts from merchant discounts are in Michigan if the
six-digit NAICS codes, see the U.S. Census Bureau Web site
commercial domicile of the merchant is in Michigan.
at , or enter the same NAICS
• Loan servicing fees are in Michigan under any of the
code used when filing the entity’s U.S. Form 1120, Schedule K,
following circumstances:
U.S. Form 1120S, or U.S. Form 1065.
○ For a loan secured by real property, if the real property
UBGs: Leave this line blank. This information will be included
for which the loan is secured is in Michigan.
on each members’ Form 4910, page 2.
○ For a loan secured by real property, if the real property
Line 5: Enter the start date of first business activity in Michigan.
for which the loan is secured is located both in Michigan
Line 6: Enter the date, if applicable, on which the taxpayer
and in one or more other states and more than 50 percent
went out of business.
of the fair market value of the real property is located in
Line 7: Check the box that describes the DM’s organization
Michigan.
type. A Trust or a Limited Liability Company (LLC) should
○ For a loan secured by real property, if more than 50
check the appropriate box based on its federal return.
percent of the fair market value of the real property for
which the loan is secured is not located within any one
NOTE: A person that is a disregarded entity for federal tax
state but the borrower is located in Michigan.
purposes, including a single member LLC or Q-Sub, must file
○ For a loan not secured by real property, the borrower is
as if it were a sole proprietorship if owned by an individual, or
a branch or division if owned by another business entity.
located in Michigan.
• Receipts from services are in Michigan if the recipient of the
Line 8: Check this box if filing a Michigan UBG return and
services receives all of the benefit of the services in Michigan. If
include Form 4910. For CIT, taxpayer means a corporation,
the recipient of the services receives some of the benefit of the
insurance company, financial institution, or a UBG liable for
services in Michigan, the receipts are included in the numerator
tax, interest, or penalty.
of the apportionment factor in proportion to the extent that the
Lines 9a through 9c: A taxpayer may apportion on lines
recipient receives benefit of the services in Michigan.
9a through 9c only if its business activities are subject to tax
• Receipts from investment assets and activities and trading
both within and outside of Michigan. A financial institution is
assets and activities, including interest and dividends, are in
subject to tax in another state, as that term is used here, only if:
Michigan if the financial institution’s customer is in Michigan.
• It is subject to a Business Privilege Tax, a Net Income Tax, a
If the location of the financial institution’s customer cannot be
Franchise Tax measured by net income, a Franchise Tax for the
determined, both of the following apply:
privilege of doing business, or a corporate stock tax or a tax of
○ Interest, dividends, and other income from investment
the type imposed under the CIT Act in that other state; OR
assets and activities and from trading assets and activities,
• That other state has jurisdiction to subject the financial
including, but not limited to, investment securities; trading
institution to one or more of the taxes listed above regardless
account assets; federal funds; securities purchased and
of whether that state does or does not subject the financial
sold under agreements to resell or repurchase; options;
futures contracts; forward contracts; notional principal
institution to such a tax.
contracts such as swaps; equities; and foreign currency
Gross business means the sum of the following less transactions
transactions are in Michigan if the average value of the
between those entities included in a UBG:
assets is assigned to a regular place of business of the
i. Fees, commissions, or other compensation for financial
taxpayer in Michigan. Interest from federal funds sold
services.
and purchased and from securities purchased under
ii. Net gains, not less than zero, from the sale of loans and
resale agreements and securities sold under repurchase
other intangibles.
agreements are in Michigan if the average value of
the assets is assigned to a regular place of business of
iii. Net gains, not less than zero, from trading in stocks, bonds,
the taxpayer in Michigan. The amount of receipts and
or other securities.
other income from investment assets and activities is
iv. Interest charged to customers for carrying debit balances of
in Michigan if assets are assigned to a regular place of
margin accounts.
business of the taxpayer in Michigan.
v. Interest and dividends received.
○ The amount of receipts from trading assets and
activities, including, but not limited to, assets and activities
vi. Any other gross proceeds resulting from the operation as a
financial institution.
in the matched book, in the arbitrage book, and foreign
currency transactions, but excluding amounts otherwise
Gross business guidelines are summarized as follows:
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