Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 30
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41INSTRUCTIONS FOR C-8000S
REDUCTIONS TO ADJUSTED TAX BASE
Purpose: To allow you to reduce your adjusted tax base
Part 2, Gross Receipts Reduction.
by excess compensation or gross receipts.
SHORT-METHOD FILERS COMPLETE LINES 9 -
If either of the following applies to you, you may
14 ONLY. The maximum SBT any filer pays is equal to
reduce your tax base before figuring your tax.
the tax rate times one-half of your adjusted gross
receipts. Short-method filers should enter the amount
1. Total compensation from Form C-8000, line 16,
from line 14 on Form C-8000, line 42, and indicate the
comprises more than 63 percent of your tax base.
Gross Receipts Reduction method on line 41.
2. Adjusted tax base from Form C-8000, line 40, is
Lines 9 -15. Compute 50 percent of your apportioned
greater than 50 percent of gross receipts plus
gross receipts plus recapture of the capital acquisition
recapture.
deduction. You may reduce your adjusted tax base by the
The Investment Tax Credit (ITC) is not available if a
amount that is in excess of this calculation.
gross receipts reduction to the adjusted tax base is taken
Part 3, Summary
to arrive at the tax liability. However the recapture of
capital investments must still be added back.
Line 16. You may use only one method to reduce your
If you reduce your adjusted tax base when the
adjusted tax base. Compare the amounts on lines 8 and
percentage of the tax base attributable to compensation
15. If you wish to claim a reduction, enter the larger
exceeds 63%, the ITC must also be reduced. Calculate
amount here and on Form C-8000, line 41.
your tax using both options and claim a reduction to the
adjusted tax base and/or an ITC based on whichever is
Attach this schedule to your return.
most advantageous.
Carry all percentages to six decimal places. Do not
round percentages. For example 24.154256 percent
becomes 24.1542 percent (.241542).
Line 2, Account Number. Enter the same account
number used on page 1 of your annual return.
Part 1, Compensation Reduction.
Lines 3 - 8. Compute the percentage of your tax base that
is attributable to compensation, then compute the amount
by which you can reduce your adjusted tax base. If your
tax base is made up of more than 63 percent
compensation, you may reduce your adjusted tax base by
the percentage that is more than 63 percent. For example,
if 70 percent of your tax base is made up of
compensation, you may reduce your adjusted tax base by
7 percent (70 - 63). Complete Part 2 also to determine
which method is to your advantage.
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