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on a combined basis. All items paid or allocable to a single

largest allocated income. Enter the allocated income of the

individual will be combined when calculating the disqualifier,

shareholder or officer with the highest allocated income after

regardless of the number of entities from which the amounts

loss adjustment, even if that figure is $160,000 or less.

may be derived.

If loss adjustment is successfully applied to fully or partially

NOTE: This is a change from the comparable calculation in

cure a shareholder’s allocated income disqualifier, enter on line

MBT. For more information on UBGs, see the “Supplemental

12 the number from Form 4895, line 12

Instructions for UBGs” in Form 4890.

Line 13: For a taxpayer whose shareholders or officers all have

In addition, a disqualifier applies to a UBG if such disqualifier

allocated income (after loss adjustment) of $160,000 or less,

applies to any member of that UBG. For example, a UBG is

enter 100 percent.

disqualified from taking the Small Business Alternative Credit

All other taxpayers, see the table at the bottom of this

if that UBG includes a member from which the allocated

worksheet to determine what percent to enter on this line.

income of a shareholder is $200,000, even if the allocated

income of that shareholder from another UBG member is a

Line 14: All taxpayers must complete this line.

$50,000 loss, producing a net (groupwide) allocated income of

If gross receipts from line 1 are $19,000,000 or less, carry the

$150,000.

amount on line 14 to Form 4946, line 28.

Line-by-Line Instructions

reduction Based on Gross receipts

Complete this section if gross receipts are more than

Lines not listed are explained on the form.

$19,000,000 but not more than $20,000,000.

Name and Account Number: Enter name and account number

as reported on page 1 of the MBT Annual Return (Form 4567).

Line 17: For a result less than zero, enter zero.

UBGs: Complete one form for the group. Enter the Designated

Do not include a completed worksheet as part of the tax

Member (DM) name in the Taxpayer Name field and the DM

return filing.

account number in the Federal Employer Identification Number

(FEIN).

Line 1: Enter amount from Form 4567, line 12. For periods less

than 12 months, enter annualized gross receipts. For guidance,

see the “Annualizing” section at the beginning of these

instructions.

UBGs: All UBG filers will use the amount from Form 4567,

line 12. For periods less than 12 months, line 10 reflects the

annualized amount for the purpose of completing Form 4893.

Adjusted Business Income

Line 3: Enter business income from Form 4946, line 10.

NOTE: The adjusted business income (ABI) disqualifier is

based on annualized ABI, but the credit calculations performed

here are based on actual ABI.

UBGs: Enter business income for all members from Form

4946, line 10.

Line 4: Enter, to the extent deducted in determining federal

taxable income, a carryback or carryover of a capital loss from

Schedule D of federal Form 1120. Enter as a positive number.

UBGs: Combine for all members all carryback or carryover

of a capital loss, to the extent deducted in determining federal

taxable income, and enter on line 4. Enter as a positive number.

Line 9: If loss adjustment is successfully applied to cure an

ABI disqualifier, ignore the apparent disqualification on line 9

of the worksheet and proceed with calculating the SBAC on the

remainder of the worksheet.

Small Business Alternative Credit Calculation

Line 12: The Small Business Alternative Credit is reduced

if a shareholder or an officer has allocated income after loss

adjustment of more than $160,000 but not more than $180,000.

This reduction is based on the officer/shareholder with the

Form 4946 - Michigan Schedule Of Corporate Income Tax Liability For A Michigan Business Tax Filer - 2012 Page 8

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