Presentation 3 Presentation 3 Michigan Business Tax Michigan - - PowerPoint PPT Presentation

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Dec 13, 2023 194 likes •385 views

Presentation 3 Presentation 3 Michigan Business Tax Michigan Business Tax Annual Return Annual Return Form 4567, Part 1 Part 1 Form 4567, Presentation Overview Presentation Overview Forms located in Presentation Resources Forms

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Presentation 3 Presentation 3

Michigan Business Tax Michigan Business Tax Annual Return Annual Return Form 4567, Form 4567, Part 1 Part 1

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Presentation Overview Presentation Overview

Forms located in Presentation Resources

Forms located in Presentation Resources section section

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Able to skip to specific slides

Able to skip to specific slides

Numerous other MBT Forms

Numerous other MBT Forms Presentations Presentations

Forms are DRAFT versions

Forms are DRAFT versions

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Form 4567

Modified Gross Receipts Tax Modified Gross Receipts Tax Overview Overview

Modified gross receipts tax base is defined as

Modified gross receipts tax base is defined as gross receipts less purchase from other firms gross receipts less purchase from other firms and a qualified affordable housing project and a qualified affordable housing project deduction deduction

To calculate a modified gross receipts tax

To calculate a modified gross receipts tax liability, the modified gross receipts tax base is liability, the modified gross receipts tax base is multiplied by the Michigan apportionment multiplied by the Michigan apportionment factor and then by 0.8 percent factor and then by 0.8 percent

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 11: Gross Receipts Line 11: Gross Receipts

The entire amount received by the taxpayer

The entire amount received by the taxpayer from any activity, whether in intrastate, from any activity, whether in intrastate, interstate or foreign commerce, carried out for interstate or foreign commerce, carried out for direct or indirect gain, benefit or advantage to direct or indirect gain, benefit or advantage to the taxpayer or to others, with certain the taxpayer or to others, with certain exceptions exceptions

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12: “Subtractions” are deductions from a Line 12: “Subtractions” are deductions from a taxpayer’s gross receipts to arrive at the taxpayer’s gross receipts to arrive at the Modified Gross Receipts Tax base Modified Gross Receipts Tax base

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12a: Inventory acquired during tax year Line 12a: Inventory acquired during tax year

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12b: Depreciable assets acquired during the Line 12b: Depreciable assets acquired during the tax year tax year

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12c: Materials and supplies not included in Line 12c: Materials and supplies not included in inventory or depreciable property inventory or depreciable property

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12d: For staffing companies, compensation Line 12d: For staffing companies, compensation

f personnel supplied to customers
f personnel supplied to customers

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12e: Deductions for contractors in SIC Line 12e: Deductions for contractors in SIC Codes 15, 16 and 17 Codes 15, 16 and 17

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax Subtractions Subtractions

Line 12f: Miscellaneous Line 12f: Miscellaneous

Film rental or royalty payments paid

Film rental or royalty payments paid

Qualified affordable housing project deduction

Qualified affordable housing project deduction

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 14a: Modified Gross Receipts. Subtract line Line 14a: Modified Gross Receipts. Subtract line 13 from line 11. 13 from line 11. Line 14b: If box 10e checked, multiply line 14a by Line 14b: If box 10e checked, multiply line 14a by percentage on line 10h. percentage on line 10h. Line 15: Apportioned Modified Gross Receipts Line 15: Apportioned Modified Gross Receipts Tax Base. Multiply line 14b by percentage on Tax Base. Multiply line 14b by percentage on line 10d. line 10d.

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 16a: Single Business Tax business loss Line 16a: Single Business Tax business loss carryforward carryforward Line 16b: Multiply line 16a by 65% (0.65) Line 16b: Multiply line 16a by 65% (0.65)

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 17: Subtract line 16b from line 15. If less Line 17: Subtract line 16b from line 15. If less than zero, enter zero than zero, enter zero Line 18: Multiply line 17 by .8% (0.008) Line 18: Multiply line 17 by .8% (0.008)

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 19: Enrichment Prohibition for dealer of Line 19: Enrichment Prohibition for dealer of new motor vehicles or personal watercraft. new motor vehicles or personal watercraft.

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Form 4567

Part 1: Modified Gross Receipts Tax Part 1: Modified Gross Receipts Tax

Line 20: Modified Gross Receipts Tax Before All Line 20: Modified Gross Receipts Tax Before All

Credits. The greater of line 18 or 19.
Credits. The greater of line 18 or 19.

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