Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 37
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41INSTRUCTIONS FOR C-8043
STATUTORY EXEMPTION SCHEDULE
Purpose: To compute the allowable statutory exemption.
Line 5. Enter the amount from Form C-8000KC,
line 5. Corporations claiming a statutory exemption or a
Note: For most filers, the statutory exemption is
small business credit must complete SBT Schedule of
available only if business income is less than $67,500.
Shareholders and Officers (Form C-8000KC) to
For most corporations, the statutory exemption is
determine compensation and directors’ fees of all
available only if the sum of business income, federal loss
shareholders. S-corporations and professional
carryover and carry backs and compensation/director’s
corporations must use C-8000KC to determine qualified
fees of all shareholders is less than $67,500.
shareholders for the additional exemption.
For the purposes of computing the statutory exemption
Line 7. Enter $45,000 unless you are a member of a
and the small business credit, a member of an LLC is
controlled group. If you are a member of a controlled
treated as a partner if the LLC is taxed as a partnership.
group and claim an allocated statutory exemption, you
For the purpose of computing the statutory exemption
must attach SBT Allocation of Statutory Exemption,
only, a member of an LLC is treated as a shareholder if
Standard Small Business Credit and Alternate Tax for
the LLC is taxed as a corporation.
Members of Controlled Groups (Form C-8009) to your
The statutory exemption cannot be used to increase a
SBT return. A controlled group is entitled to only one
business loss to the next year or to offset adjusted tax
statutory exemption, which is allocated on the C-8009.
base, as determined on line 36 of your Single Business
Controlled groups must enter the amount from the
Tax Annual Return (Form C-8000) before you report the
C-8009, line 4.
use of the loss carryovers on Form C-8000, line 37. An
Lines 8 through 10. Complete these lines to increase the
unused statutory exemption cannot be carried forward.
statutory exemption for the number of qualified partners
The statutory exemption will be reduced by $2 for each
or shareholders. Enter the amount from SBT Schedule of
$1 that line 6 exceeds the amount of the exemption on
Partners (Form C-8000KP), line 5, or the amount from
line 13.
SBT Schedule of Shareholders and Officers (Form
C-8000KC), line 4.
Lines not listed are explained on the form.
Note: The increased statutory exemption is only
Line 2, Account Number. Enter the same account
available to S-corporations and professional corporations.
number used on page 1 of your annual return.
It is not available to other types of corporations.
Line 3. Enter your business income from Form
Lines 11 and 12. Complete these lines if you had
C-8000, line 11.
business activity for a period of less than 12 months.
•
Individuals, Fiduciaries, Partnerships and Limited
Line 16. Enter here and on your Single Business Tax
Liability Companies - may average their income
Annual Return (Form C-8000), line 39. If line 16 is
before computing their statutory exemption. If you
negative, enter zero.
choose to average your business income, complete
Attach this schedule to your annual return.
SBT Statutory Exemption/Business Income Averaging
(Form C-8000G). Enter the amount from the C-8000G,
line 9, here. Be sure to check the box on Form C-8000,
line 40a, to indicate that you have averaged your
income.
Note: Business income averaging is used only to
figure the statutory exemption. Do not use it as the
current year business income on any form.
70
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