Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 10
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41ADJUSTMENTS
Allocation of Statutory Exemption, Standard Small
Business Credit and Alternate Tax for Members of
If during the tax year you disposed of any depreciable
Controlled Groups (Form C-8009). A controlled group is
real or personal property purchased in a tax year
entitled to only one statutory exemption, which is
beginning before January 1, 2000, or moved outside of
allocated on Form C-8009.
Michigan depreciable property purchased in a tax year
beginning after December 31, 1996 and before
• Individuals, Fiduciaries, Partnerships and Limited
January 1, 2000, complete SBT Recapture of Capital
Liability Companies - If you choose to average your
Acquisition Deduction (Form C-8000D), page 27
business income to determine the statutory exemption,
before continuing. Attach completed schedule to your
complete SBT Statutory Exemption/Business Income
return.
Averaging (Form C-8000G), page 31. Attach
Line 36, Adjusted Tax Base Before Loss Deduction
completed schedule to your return.
and Statutory Exemption. Any negative amount on this
REDUCTIONS, NONREFUNDABLE
line is a business loss which may be carried forward
CREDITS, AND TAX
successively to the next 10 taxable years, or until the loss
Line 41, Reduction to Adjusted Tax Base. You may
is used, whichever occurs first. If line 36 is negative no
qualify for either the compensation or the gross receipts
tax is due. Enter 0 on line 43.
reduction on SBT Reductions to Adjusted Tax Base (Form
Line 37, Business Loss Deduction. Enter any unused
C-8000S), page 53, but may use only one. Enter the
business loss carryover from the single business tax
amount of the reduction from Form C-8000S, line 16.
returns for the preceding 10 years. (Loss on line 38 in
Reminder: If you choose to use a reduction, check the
preceding years less the adjusted tax base in intervening
appropriate box which indicates the method of
years.)
reduction used. The Investment Tax Credit (ITC) is
Note: This is not the federal net operating loss.
not available if a gross receipts reduction to the
Line 38. Subtract line 37 from line 36. If negative, enter
adjusted tax base is taken to arrive at the tax liability.
zero and carry the unused loss to next year’s SBT return.
However, the recapture of capital investments must
STATUTORY EXEMPTION
still be added back. If you reduce your adjusted tax
• Corporations - If you are claiming a statutory
base by the percentage that compensation exceeds
exemption or a small business credit, complete SBT
63%, the ITC must also be reduced. Choose a
Schedule of Shareholders and Officers (Form
reduction method or the ITC, based on which option
C-8000KC), page 43, before continuing. Attach
is most advantageous to you.
completed schedule to your return.
Line 42. Filers using the SHORT METHOD, enter the
• Partnerships - If you are filing as a partnership and
amount from C-8000S, line 14. The amount on this line
should never be more than 50 percent of the sum of
need to determine which partners qualify for the
apportioned gross receipts plus recapture of capital
increased statutory exemption, complete SBT Schedule
acquisition deduction. If this method is used the ITC is
of Partners (Form C-8000KP), page 47, before
not available.
continuing. Attach completed schedule to your return.
Important: If you are eligible for the Investment Tax
Line 39, Allowable Statutory Exemption. For most
Credit, complete SBT Investment Tax Credit (Form
filers, the statutory exemption is available only if
C-8000ITC), page 39, before continuing. Attach
business income is less than $67,500.
completed schedule to your return.
• Corporations - For most corporations, the statutory
Line 44, Tax After Investment Tax Credit. If you are
exemption is available only if the sum of business
claiming an Investment Tax Credit (ITC), enter the
income, federal loss carryovers or carrybacks, and
amount from Form C-8000ITC, line 37. If you are not
compensation/director fees of all shareholders is less
claiming an ITC, carry the amount from line 43 to line
than $67,500.
44.
A statutory exemption cannot be used to increase a
The small business credit and the alternate tax are
business loss or to offset adjusted tax base as determined
computed on SBT Credit for Small Businesses and
on C-8000, line 36, before loss carryovers are reported on
Contribution Credits (Form C-8000C ), page 21. Review
C-8000, line 37. An unused statutory exemption can’t be
the C-8000C to make sure you take all the tax credits due
carried forward.
you. Attach completed schedule to your return.
You must complete the SBT Statutory Exemption
If you are a member of a controlled group, the small
Schedule (Form C-8043) on page 69 before continuing.
business credit and alternate tax are computed on SBT
Attach completed schedule to your return.
Allocation of Statutory Exemption, Standard Small
If you are a member of a controlled group and claim
an allocated statutory exemption, complete SBT
14
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