Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 21
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41INSTRUCTIONS FOR C-8000G
STATUTORY EXEMPTION/
BUSINESS INCOME AVERAGING
Purpose: For persons other than corporations to
Lines 3 through 7. For each taxable year enter business
average your business income with the previous four
income in column b as reported on the annual return. If
years to compute your statutory exemption.
business income for any taxable year is negative, enter
“0.” If you have no business income because you were
•
Individuals, Partnerships, Fiduciaries and Limited
not required to file a return, gross receipts are less than
Liability Companies - If you have had four taxable
the filing requirement for that year, determine your
years preceding the taxable year 2001 (1997 through
business income on the appropriate worksheet on page 16
2001), you may choose to average your business
in the instruction booklet. Enter the amount in column b.
income to determine your 2001 statutory exemption.
Attach the worksheet to this form.
Note: Business income averaging is used only to figure
If any tax year was less than 12 months, annualize the
the statutory exemption. Do not use it as the current year
business income. To annualize: multiply the business
business income on any form.
income from the annual return by 12 and divide the result
WHAT IS A “TAXABLE YEAR?”
by the number of months the business operated. Enter the
result in column b. Individuals are not required to
A taxable year is one in which you had business activity,
annualize. For complete annualizing instructions and an
whether or not you filed an annual return. Your tax year
explanation of a partial month, see General Information,
for the SBT is the same period covered by your federal
page 6.
return.
Line 8. Add the business income on lines 3 through 7 in
REORGANIZATIONS
column b.
Certain reorganizations do not interrupt the averaging of
Line 9. Divide the total business income determined on
the business income. If the parties of the reorganization
line 8 by the number 5 and enter this on line 9. If line 9 is
are not corporations and controlling interest is kept in the
greater than line 3, do not average your business income.
resulting organizations (80 percent ownership) by
If line 9 is less than line 3, use the amount on line 9 to
previous owners, the taxable years of the previous
figure your statutory exemption. See the instructions for
owners may be used. If you have a qualifying
the SBT Statutory Exemption Schedule (Form C-8043).
reorganization, attach an explanation giving the name and
Do not use the averaged amount as the current year
account number of all persons involved and the date and
business income on any form.
description of the reorganization, e.g., individual to
fiduciary.
Attach this schedule to your return.
Line 2, Account Number. Enter the same account
number used on page 1 of your annual return.
32
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