Michigan Corporate Income Tax Annual Return For Financial Institutions - 2012 Page 15
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30accounting principles (GAAP). If the financial institution
sourced in this section, are in Michigan if the assets are
assigned to a regular place of business of the taxpayer in
does not maintain its books and records in accordance with
generally accepted accounting principles, net capital must be
Michigan.
computed in accordance with the books and records used by
• Interest charged to customers for carrying debit balances
the financial institution, so long as the method fairly reflects
on margin accounts without deduction of any costs incurred in
the financial institution’s net capital for purposes of CIT. If the
carrying the accounts is in Michigan if the customer is located
financial institution owns a subsidiary that is an authorized
in Michigan.
insurance company, the equity capital of the insurance
• Interest from loans secured by real property is in Michigan
subsidiary is not included in the financial institution’s equity
if the property is located in Michigan, if the property is located
capital. Attach supporting schedules. Negative Equity Capital
both within Michigan and one or more other states and more
is not permitted.
than 50 percent of the fair market value of the real property
UBGs: Leave lines 10 through 17 blank, complete line 18 with
is located in Michigan, and if more than 50 percent of the fair
market value of the real property is not located within any one
combined data from Form 4910, line 22, and proceed with the
state but the borrower is located in Michigan.
rest of the lines on Form 4908.
• Interest from loans not secured by real property is in
Line 11: Under PA 38 of 2011, Section 651(k), Michigan
Michigan if the borrower is located in Michigan.
obligations means a bond, note, or other obligation issued by a
• Net gains from the sale of loans secured by real property
governmental unit described in Section 3 of the Shared Credit
Rating Act, Public Act 227 of 1985, MCL 141.1053.
or mortgage service rights relating to real property are in
Michigan if the property is in Michigan, if the property is
Line 12: Under PA 38 of 2011, Section 651(s), United States
located both within Michigan and one or more other states
obligations means all obligations of the United States exempt
and more than 50 percent of the fair market value of the real
from taxation under 31 USC 3124(a) or exempt under the
property is located in Michigan, or if more than 50 percent of
United States constitution or any federal statute, including
the fair market value of the real property is not located in any
the obligations of any instrumentality or agency of the United
one state, but the borrower is located in Michigan.
States that are exempt from state or local taxation under the
• Net gains from the sale of loans not secured by real property
United States constitution or any statute of the United States.
or any other intangible assets are in Michigan if the depositor
Line 15a: If this taxpayer owns a subsidiary that is an
or borrower is located in Michigan.
authorized insurance company, enter the actual amount of the
• Receipts from the lease of real property are in Michigan if
capital fund maintained within that subsidiary. This does not
the property is located in Michigan.
include a captive insurance company.
• Receipts from the lease of tangible personal property are in
Line 15b: Enter the minimum capital fund amount required by
Michigan if the property is located in Michigan when it is first
regulations for that insurance subsidiary.
placed in service by the lessee.
• Receipts from the lease of transportation tangible personal
Line 18: Fiscal Year Taxpayers: Enter on this line a prorated
amount. To compute this, divide line 17 by the number of
property are in Michigan if the property is used in Michigan
or if the extent of use of the property in Michigan cannot be
tax periods reported in the table. Multiply this amount by a
determined but the property has its principal base of operations
fraction, the numerator of which is the total months included in
this return and the denominator of which is the total months in
in Michigan.
the corresponding federal tax year of this financial institution.
UBGs: Carry amount from Form 4910, line 2C, to line 9a, and
the amount from Form 4910, line 3C, to line 9b.
UBGs: If the UBG includes financial members that are fiscal
year taxpayer, the proration calculation explained above will be
PART 1: FRANCHISE TAX
performed on that member’s Form 4910.
The following tax base calculation involves a five-year
UBG NOTE: A member of a UBG of financial institutions
average of net capital. Enter data from the current tax year
will eliminate its investment in another member of the same
and four most recent Michigan Business Tax (MBT) tax
group. However, in order to reach net capital for the group,
periods to complete the five-period table. For purposes of
each member of a UBG of financial institutions must compute
this table, treat a partial period as a full period. If the current
its tax base individually in accordance with GAAP. The rules
and four preceding tax periods include any short periods, the
of GAAP do not permit negative equity capital for a financial
years printed in column headings for this part will not apply
institution.
accurately. For example, assuming no short periods reported
for federal purposes, a financial institution with a fiscal year-
PART 2: PAYMENTS AND TAX DUE
end of August 31 would average the net capital for tax years
UBGs: On lines 23 through 26, enter combined data for all
ending August 31, 2009, August 31, 2010, August 31, 2011,
members included on this combined return.
December 31, 2011, and August 31, 2012.
Line 23: Enter overpayment credited from prior MBT or CIT
Fiscal filers, see the supplemental instructions on in the Forms
and Instructions for Financial Institutions (Form 4907).
return.
Line 24: Enter total payments made with the CIT Quarterly
Line 10: Enter equity capital as of the last day of the filing
Return (Form 4913), the CIT estimates paid with the Combined
period, as computed in accordance with generally accepted
15
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial