Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 8
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41correctly. Use the appropriate worksheet on page 16 to
Line 13, Employee Insurance Plans. Enter payments to
determine gross receipts.
health or life insurance plans for employees, payments
for health and welfare and non-insured benefit plans, and
Line 11, Business Income. Use the appropriate
payment of fees for the administration of health and
worksheet on page 16 to determine business income.
welfare and non-insured benefit plans.
THE SHORT METHOD to compute your SBT.
Do not include here or on line 15, contributions for
The maximum SBT any filer pays is equal to the tax rate
FICA (Social Security and Medicare), workers’
times one-half of your adjusted gross receipts. Adjusted
compensation insurance, or the state and federal
gross receipts means gross receipts, apportioned for
unemployment compensation fund.
companies doing business outside of Michigan, plus
Line 15, Other. Include here any payments made for the
recapture of capital acquisition deduction. You can figure
benefit of employees that are not included on lines 13 -
this amount quickly using SBT Reductions to Adjusted
14. For example: payments to supplemental
Tax Base (Form C-8000S), page 53, lines 9-14, instead of
unemployment benefit trusts; payments to individuals not
figuring your tax base on Form C-8000. However, if you
currently working; payments to dependents and heirs for
want to claim the standard small business credit you must
labor services rendered by an individual.
still compute your tax base.
ADDITIONS
If you use the SHORT METHOD, complete SBT
Reductions to Adjusted Tax Base (Form C-8000S ) on
Additions are generally added to the extent deducted in
page 53.
arriving at business income, line 11.
To use the SHORT METHOD, follow these steps:
Line 17, Depreciation. Enter all depreciation or
1. Enter your gross receipts on C-8000, line 10;
amortization of tangible assets which you claimed as a
deduction on your federal return. This includes the
2. If you are claiming an unincorporated credit, enter
immediate (permitted under IRC Section 179) or
your business income on C-8000, line 11;
accelerated write-off of tangible assets.
3. Enter your recapture, if applicable, from your
C-8000D, line 19 on C-8000, line 35;
Taxpayers choosing the mileage method to determine
car expenses must include in depreciation that portion of
4. Complete C-8000S, lines 9 - 14 only;
the mileage rate that is required by the IRC to reduce the
5. Enter the amount from C-8000S, line 14 on
adjusted basis of the vehicle.
C-8000, line 42 and complete the C-8000.
Safe Harbor Leases. The lessor and lessee must report
COMPENSATION PAYMENTS
on line 17 any rent attributable to a lease-back agreement
Line 12, Salaries, Wages and Other Payments. Enter
under IRC section 168(f)(8). The lessor subtracts rental
total payments, including the cash value of all
receipts from such property, while the lessee adds rental
consideration other than cash, made on behalf of or for
payments.
the benefit of employees and officers. Report these
Line 18, Taxes. Enter all taxes on, or measured by, net
payments on a cash-only basis, i.e., include only the
income, including city and state taxes, foreign income tax
actual payments made during the year. For most filers
and federal environmental tax claimed as a deduction on
this is the amount reported on U.S. 940 for the taxable
your federal return.
year.
Line 19, Single Business Tax. Enter Single Business
Payments include salaries, wages, fees, bonuses,
Tax claimed as a deduction on your federal return.
commissions and other payments to employees that are
Line 20, Dividends, Interest and Royalty Expenses.
subject to or specifically exempt or excepted from federal
Enter any dividend, interest or royalties claimed as a
income tax withholding. This includes payments for
deduction on your federal return.
casual services, but does not include payments to
Do not include any of the following on line 20:
independent contractors or fees paid for services as a
director of a corporation.
- dividends not claimed as federal deductions;
Employee is a person from whom an employer is
- interest payments made by a financial organization;
required to withhold federal income taxes (IRC Section
- initial franchise fees and new for tax years beginning
340l(c)).
after 12/31/2000, royalties, fees and other payments or
Lines 13 through 15. Report any payments made on
consideration paid or incurred by a franchisee to a
behalf of or for the benefit of employees or officers on a
franchisor to establish or maintain the franchise
cash or accrual basis consistent with your method of
relationship;
federal income tax reporting.
- oil and gas royalties deducted;
12
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial