Presentation 10 Presentation 10 Michigan Business Tax Simplified Michigan Business Tax Simplified Return (Form 4583) (Form 4583) Return
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MBT Simplified Return MBT Simplified Return Form 4583 Form 4583 � Form 4583 MBT Simplified Return allows qualifying Form 4583 MBT Simplified Return allows qualifying � standard taxpayers to claim the Small Business standard taxpayers to claim the Small Business Alternative credit and to file and pay the MBT due Alternative credit and to file and pay the MBT due without computing the Business Income Tax or Gross without computing the Business Income Tax or Gross Receipts Tax imposed under Sections 201 and 203 of Receipts Tax imposed under Sections 201 and 203 of the MBT Act. the MBT Act. � A qualified taxpayer may also use this form to claim the A qualified taxpayer may also use this form to claim the � Gross Receipts Filing Threshold Credit and any Gross Receipts Filing Threshold Credit and any refundable credits for which they are eligible. refundable credits for which they are eligible. Form 4583
MBT Simplified Return MBT Simplified Return Form 4583 Form 4583 Standard taxpayers are eligible to use this form if all of the Standard taxpayers are eligible to use this form if all of the following conditions apply: following conditions apply: � Gross Receipts do not exceed $19,000,000. Gross Receipts do not exceed $19,000,000. � � Adjusted business income does not exceed $1,300,000 Adjusted business income does not exceed $1,300,000 � or $160,000 for individuals or fiduciaries. or $160,000 for individuals or fiduciaries. � Filer is not a member of a UBG filing a combined Filer is not a member of a UBG filing a combined � return. return. � Filer is not apportioning business activity Filer is not apportioning business activity � � No partner has distributive income of more than No partner has distributive income of more than � $160,000. $160,000. � No individual, shareholder or officer has allocated No individual, shareholder or officer has allocated � income over $160,000. income over $160,000. Form 4583
MBT Simplified Return MBT Simplified Return Form 4583 Form 4583 Taxpayers are not not eligible to use this form if any of eligible to use this form if any of Taxpayers are the following apply: the following apply: � Fiscal year filers with tax years ending in 2008. Fiscal year filers with tax years ending in 2008. � � Financial Institutions and Insurance Companies. Financial Institutions and Insurance Companies. � Form 4583
MBT Simplified Return MBT Simplified Return Form 4583 Form 4583 Even if eligible to file this form, a taxpayer may pay a Even if eligible to file this form, a taxpayer may pay a lower tax by filing Form 4567 and taking the Small lower tax by filing Form 4567 and taking the Small Business Alternative Credit using the MBT Common MBT Common Business Alternative Credit using the Credits for Small Businesses (Form 4571). This is especially (Form 4571). This is especially Credits for Small Businesses true if any of the following applies: true if any of the following applies: � An SBT or MBT business loss An SBT or MBT business loss carryforward carryforward exists, or exists, or � � A nonrefundable credit may be claimed A nonrefundable credit may be claimed � Form 4583
MBT Simplified Return MBT Simplified Return Form 4583 Form 4583 Refund Only: If apportioned or allocated gross receipts are less than $350,000 and the taxpayer is filing this form to claim a refund of estimates paid, skip lines 10 through 21 and lines 28 through 31. Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 9: Gross Receipts (MCL 208.1111(1)) Line 9: Gross Receipts (MCL 208.1111(1)) � Gross Receipts Gross Receipts means the entire amount received means the entire amount received � by the taxpayer from any activity, whether in by the taxpayer from any activity, whether in intrastate, interstate or foreign commerce, intrastate, interstate or foreign commerce, carried out for direct or indirect gain, benefit or carried out for direct or indirect gain, benefit or advantage to the taxpayer or to others, with advantage to the taxpayer or to others, with certain exceptions. certain exceptions. Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 10: Business Income (MCL 208.1105(2)) Line 10: Business Income (MCL 208.1105(2)) “Business income” means that part of federal means that part of federal “Business income” taxable income derived from business activity. taxable income derived from business activity. Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 10: Business Income (MCL 208.1105(2)) Line 10: Business Income (MCL 208.1105(2)) continued continued � For a partnership or S corporation For a partnership or S corporation � � Organization that is a mutual or cooperative electric Organization that is a mutual or cooperative electric � company exempt under section 501(c)(12) of the company exempt under section 501(c)(12) of the internal revenue code internal revenue code Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 10: Business Income (MCL 208.1105(2)) continued Line 10: Business Income (MCL 208.1105(2)) continued � Tax Tax- -exempt person exempt person � � Individual, estate, partnership organized exclusively for Individual, estate, partnership organized exclusively for � estate or gift planning purposes, or trust organized estate or gift planning purposes, or trust organized exclusively for estate or gift planning purposes exclusively for estate or gift planning purposes � Business income does not include personal transactions. Business income does not include personal transactions. � Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 10: Business Income (MCL 208.1105(2)) Line 10: Business Income (MCL 208.1105(2)) continued continued For more information on Business Income refer For more information on Business Income refer to Part 2 of Form 4567 (MBT Annual Return) (MBT Annual Return) to Part 2 of Form 4567 Business Income Tax. Business Income Tax. Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 11: Capital loss and/or carryover or carryback carryback Line 11: Capital loss and/or carryover or of federal net operating loss (cannot be a of federal net operating loss (cannot be a negative number) negative number) Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 12 Compensation and director fees of active Line 12 Compensation and director fees of active shareholders from Form 4577, line 3. shareholders from Form 4577, line 3. Line 13 Compensation and director fees of Line 13 Compensation and director fees of officers from Form 4577, line 4. officers from Form 4577, line 4. Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 14: Adjusted Business Income. Add lines 10 Line 14: Adjusted Business Income. Add lines 10 through 13. If less than zero, enter zero on line through 13. If less than zero, enter zero on line 15. 15. Line 15: Tax Before All Other Credits. Multiply Line 15: Tax Before All Other Credits. Multiply line 14 by 1.8% (0.018) line 14 by 1.8% (0.018) Form 4583
MBT Simplified Return MBT Simplified Return Part 1: Calculation of Tax Part 1: Calculation of Tax Line 16: Threshold Ceiling - - $700,000 $700,000 Line 16: Threshold Ceiling Line 17: Gross Receipts from line 9. If less than 12 Line 17: Gross Receipts from line 9. If less than 12 months annualized amounts must be used. (form/inst) months annualized amounts must be used. (form/inst) Line 18: Excess Gross Receipts. Subtract line 17 form Line 18: Excess Gross Receipts. Subtract line 17 form line 16. If less than zero, enter zero and carry to line line 16. If less than zero, enter zero and carry to line 20. 20. Line 19: Gross Receipts Filing Threshold Credit Line 19: Gross Receipts Filing Threshold Credit Percentage. Divide line 18 by 350,000. Percentage. Divide line 18 by 350,000. Line 20: Gross Receipts Filing Threshold Credit. Line 20: Gross Receipts Filing Threshold Credit. Multiply line 15 by 19. Multiply line 15 by 19. Line 21: Tax After Gross Receipts Filing Threshold Line 21: Tax After Gross Receipts Filing Threshold Credit. Subtract line 20 from line 15. Credit. Subtract line 20 from line 15. Form 4583
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