Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 25
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41INSTRUCTIONS FOR C-8000KC
SCHEDULE OF SHAREHOLDERS AND OFFICERS
Purpose: For all corporations to determine eligibility
Column D: Enter the percentage of each shareholder’s
for the standard small business credit or alternate tax and
time that is spent working in this business. This is used
for professional and S-corporations to determine which
for the statutory exemption only.
shareholders qualify for the increased exemption.
Column E: Enter the percentage of outstanding stock
Note: For the purpose of computing the statutory
each officer or shareholder owns. If a shareholder owned
exemption only, a member of an LLC is treated as a
stock for a period less than the corporation’s tax year,
shareholder if the LLC is taxed as a corporation.
multiply that shareholder’s percentage of ownership by
the number of months owned and divide the result by the
If you are filing as a corporation and claiming a
number of months in the corporation’s tax year. You
statutory exemption, standard small business credit or are
must account for 100 percent of the stock. If it is not
calculating the alternate tax, complete this form and
accounted for, your return may be delayed.
attach it to your annual return to report:
Column F: Enter the percentage of outstanding stock
- qualified shareholders for the increased statutory
exemption.
each shareholder owns, including attribution of
ownership from family members under IRC section
- compensation and director fees of all shareholders for
318(a)(1). The percentage of ownership in column F
the computation of the statutory exemption.
must be greater than or equal to the percentage of
- shareholders and officer qualifications for the small
ownership in column E.
business credit or alternate tax.
Column G: Enter the percentage of outstanding stock
- compensation and director fees of active shareholders
each shareholder owns, including attribution of
and all officers for the computation of the small
ownership only from, or to, family members who are not
business credit or alternate tax.
active shareholders. See definition of active shareholders
Lines not listed here are explained on the form.
on the next page. For the purposes of determining
Line 2, Account Number. Enter the same account
disqualification, an active shareholder’s share of business
number used on page 1 of your annual return.
income is not attributed to another active shareholder.
Part 1, Line 3 (Columns A-M).
Note: Column G is the same as Column F, minus any
Shareholders and Officers.
attribution between two active shareholders. All
In column 3A, a through h, list and describe all
columns should add up to at least 100 percent.
shareholders and officers who:
Example
- are employees of the corporation,
In this case, the husband and daughter are active share-
- are directors of the corporation, or
holders. The wife and son are non-active because compen-
- own 20 percent or more of the stock of the corporation
sation, directors fees or dividends from the business are less
including those by attribution.
than $10,000.
% Stock
Shareholder means a person who owns outstanding
Column E
Column F
Column G
stock in the business. An individual is considered as
Husband
40%
100%
70%
owning the stock owned, directly or indirectly, by or for
(active)
(all share-
(husband,
family members as defined by IRC Section 318(a)(1). An
holders)
wife & son)
officer of any corporation, other than an S-corporation,
Wife
10%
100%
100%
includes the chairperson of the board, president, vice-
(inactive)
(all share-
(all share-
president, secretary and treasurer, or persons performing
holders)
holders)
similar duties.
Son
20%
70%
70%
Columns A and B: Identify each officer and shareholder
(inactive)
(husband
(husband,
(including corporation and trust and those with
wife & son)
wife & son)
ownership by attribution) by name and Social Security
Daughter
30%
80%
40%
number. Corporations or trusts should be identified
(active)
(daughter,
(daughter,
using federal employer identification number.
husband &
& wife)
Note: Rules of attribution do not differentiate between
wife)
an adult and a minor child (IRC Section 318(a)(1)).
45
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