Looking for a Michigan Form 4585 Templates? Download it for free!

same apportionment percentage for each row completed.

information regarding each depreciable mobile tangible asset

• Column F: Subtract column E from column B for each

acquired in a tax year beginning after 1999 and prior to 2008,

and sold or otherwise disposed of during the tax year. Sum

row. If column E is a loss, add its positive value to column B

the total gross proceeds and gain or loss for all disposed assets

for each appropriate row. A loss in column E will increase the

acquired in the same taxable year. Enter in this form only the

recapture base.

total sum of gross proceeds and gain or loss grouped by taxable

Line 2: Mobile tangible assets are all of the following:

year the assets were acquired. Use one row per group of disposed

• Motor vehicles that have a gross vehicle weight rating of

assets acquired in the same taxable year. Start from the earliest

acquisition year.

10,000 pounds or more and are used to transport property or

• Column D: Subtract figures in column C from figures in

persons for compensation;

• Rolling

column B for each row. If column C is a loss, add its positive

stock

(railroad

freight

passenger

cars,

value to column B for each appropriate row. A loss in column

locomotives or other railcars), aircraft, and watercraft used by

C will increase the recapture.

the owner to transport property or persons for compensation or

used by the owner to transport the owner’s property for sale,

• Column E: Enter the apportionment percentage from Form

rental, or further processing;

4567, line 11c. Enter the same apportionment percentage for

• Equipment used directly in completion of, or in construction

each row you have filled columns A through D.

contracts

for,

the

construction,

alteration,

repair,

• Column F: Multiply figures in column D by column E for

improvement of property.

each row.

For depreciable mobile tangible assets that were acquired in

Line 3: For depreciable tangible assets other than mobile

a tax year beginning after 1999 and prior to 2008, and were

tangible assets acquired in tax years beginning after 1996

sold or otherwise disposed of during the tax year, enter the

and prior to 2008, that were eligible for the ITC in tax years

following:

beginning after 1999 and prior to 2008, and were transferred

• Column A: Separate the depreciable mobile tangible assets

outside Michigan during the tax year, enter the following:

that were disposed of during the filing period by the tax year

• Column A: Separate the depreciable tangible assets

in which they were acquired. Use a separate row for each

other than mobile tangible assets that were transferred out of

acquisition year. Enter the tax years of acquisition (end dates

Michigan during the filing period by the tax year in which

only) in chronological order, starting with the first tax year

they were acquired. Use a separate row for each acquisition

beginning after 1999. An acquisition year for which there were

year. Enter the tax years of acquisition (end dates only) in

no dispositions of depreciable mobile tangible assets during

chronological order, starting with the first tax year beginning

the filing period may be omitted. However, do not omit the

after 1999. An acquisition year for which there were no

acquisition year of depreciable mobile tangible assets that have

transfers of depreciable tangible assets out of Michigan during

been sold on an installment method if gains attributable to

the filing period may be omitted.

installment payments received during the current filing period

• Column B: Total sum of adjusted federal basis from all

must be reported.

depreciable tangible assets acquired in the same taxable year

• Column B: Total gross proceeds from all depreciable mobile

and transferred out of Michigan during the filing period.

tangible assets that were acquired in the same taxable year and

Keep in your files a separate worksheet with the appropriate

disposed of during the filing period. If a qualifying asset was

sold on an installment sale in a prior filing period, the entire sale

information regarding each depreciable tangible asset other

than mobile tangible assets acquired in tax years beginning

price was reported for recapture purposes in the year of sale.

after 1999 and prior to 2008, that were eligible for the ITC in

Therefore, if a payment was received on that installment sale

in the current filing period, do not report that amount as gross

tax years beginning after 1999 and prior to 2008, and were

transferred outside Michigan during the tax year. Sum the total

proceeds for this period. See Column C, however, with respect to

adjusted federal basis for all such transferred assets acquired

the gain from that installment payment.

in the same taxable year. Enter in this form only the total sum

• Column C: Net total gains/losses reflected in federal

of adjusted federal basis grouped by taxable year the assets

taxable income (as defined for MBT purposes) from all

were acquired. Use one row per group of such transferred

depreciable mobile tangible assets that were acquired in

assets acquired in the same taxable year. Start from the earliest

the same taxable year and disposed of during the filing

taxable year.

period. Report also in column C any gain reflected in

federal taxable income (as defined for MBT purposes) that

PART 2: CALCULATION OF SBT ITC RECAPTURE RATES

is attributed to an installment payment received during the

The calculation of the recapture rates can be done by using one

current MBT filing period, from a prior installment sale of

of 3 methods described below in the “Method Summary Table.”

an asset that was of a type and acquisition date covered by

Because each method has unique characteristics, the summary

line 2. For property placed in service prior to January 1,

table highlights the pros and cons of each. After choosing your

2008, gain reflected in federal taxable income (as defined

method, fill the necessary worksheets as explained after the

for MBT purposes) is equal to the gain reported for federal

Method Summary Table, and then enter the calculated effective

purposes.

rate of SBT ITC recapture on line 4, column E.

Keep in your files a separate worksheet with the appropriate

NotE: Whichever method used, the calculated effective

144

Form 4585 - Michigan Business Tax Investment Tax Credit Recapture From Sale Of Assets Acquired Under Single Business Tax - 2012 Page 4

Related Articles

Related forms

Related Categories