November 17, 2008 |
| F4. The MBT franchise tax provides financial institutions with a tax base deduction for "the average daily book value of United States obligations and Michigan |
| Mi38. Are regulated investment companies subject to the Michigan Business Tax? If so, does the MBT provide a deduction for dividends paid similar to Federal Form 1120-RIC, U.S. Tax Return for Regulated Investment Companies? |
| B39. MCL 208.1201(2) provides a deduction for the book-to-tax difference or deferred liability resulting from the change from the |
| Mi39. MCL 208.1201(2) provides a deduction for the book-to-tax difference or deferred liability resulting from the |
| B40. At what date should the book-tax difference be calculated for the deduction provided in MCL 208.1201(2)(i)? The term "first fiscal period ending after July 12, 2007" is unclear. |
| B41. I am a broker/dealer in securities without any W-2 payroll. My major expense is 1099 commissions paid to sales representatives. Are these commission expenses deductible on my MBT return? |
| C44. Are the MEGA credits under the MBT (MCL 208.1431) the same as the MEGA credits under the SBT? |
| C45. Under the MBT, does land qualify for the Investment Tax Credit ("ITC")? |
| C46. When computing the loss adjustment for the small business alternative credit provided under MCL 208.1417, |
| U48. How does a unitary business group register under the MBT? |
| U49. Three entities, an operating farm, a trucking company, and a rental company, meet the "more than 50% ownership" test for a unitary business group. |
| M60. Are returns and allowances included or excluded when calculating the modified gross receipts figure? |
| M61. Do food items purchased by a restaurant that are ingredients in menu items for sale to customers constitute "purchases from other firms?" |
| M62. Are parts used by an outside repair person to repair taxpayer's fixed assets a "purchase from another firm" under MCL 208.1113(6)? |
| M63. When determining the modified gross receipts portion of MBT tax liability, do you include and report receipts from out-of-state companies or just Michigan-based receipts? |
| M64. I am a broker/dealer in securities without any W-2 payroll. My major expense is 1099 commissions paid to sales representatives. Are these commission expenses deductible on my MBT return? |
| A35. Will there be other E services available with the MBT, in addition to electronic filing? |
October 28, 2008 |
| Fi11. For purposes of the Film Production Credit,a production company or its designated payroll company has an obligation to withhold Michigan payroll taxes on wages paid to employees working on a Michigan production. Similarly,a production company |
| B37. Section 201(2)(i) of the MBTA allows a series of deductions beginning in 2015, based on an amount called the "book-tax difference." A taxpayer's book-tax difference must be calculated for the first fiscal period ending after |
| Fi12. Does a production company's interest expense associated with production financing qualify as a direct production expenditure that is eligible for the Film Production Credit? If so,does capitalized interest qualify? Does interest |
| F2. The surcharge of the Michigan Business Tax Act,found at MCL 208.1281,exempts "a person subject to the tax imposed |
| Fi13. Film production companies with existing credit agreements that were approved have found that they have underestimated their Michigan budgets. What is the process to address this situation,and what procedure should be followed? |
| Fi14. Are per diem expenses,living allowances,and car and meal allowances eligible for the Film Production Credit? |
| Fi15. A "box rental" occurs when an employee of a production company charges the company a weekly fee for the use of his or her own tools. For instance,a makeup person may charge the production company a weekly fee for the use of the brushes,mirror |
| Fi16. Are workers' compensation insurance expenditures eligible for film production credit? |
| F3. How does a unitary business group ("UBG") composed of financial institutions that includes a bank authorized to exercise only trust powers,which is exempt from the MBT surcharge under MCL 208.1281(4)(b),calculate the surcharge? |
| Fi17. Must a Michigan Business Tax annual return be filed to obtain a refund of a film production credit? |
| Fi18. When will expenditures made prior to approval of a film production credit agreement by the State qualify for credit? |
| U45. How does a unitary business group ("UBG") composed of financial institutions that includes a bank authorized to exercise only trust powers,which is exempt from the MBT surcharge under MCL 208.1281(4)(b),calculate the surcharge? |
| For more Film Credit information, visit www.michigan.gov/filmoffice. |
| U46. Does a unitary business group calculate its gross receipts for purposes of the gross receipts filing threshold and the filing threshold credit before or after the elimination of gross receipts arising from inter-company transactions? |
| U47. Can a unitary business group with one or more fiscal year members use the annual method for calculating its first MBT return? If so,must all fiscal year members in the group make the same election between annual and actual methods? What if a f |
| B38. May a taxpayer that has no MBT filing obligation for 2008 file Form 4593 (documenting the future section 201(2)(i) deduction regarding the book-tax difference) as a free-standing form,in order to preserve the possibility of taking |
September 17, 2008 |
| C41. How is the Small Business Alternative Credit under MCL 208.1417 calculated by a taxpayer that is a unitary business group? How do the disqualifiers and percentage reducers work? |
| B35. A real estate limited partnership owns an apartment project in Michigan subject to mortgage debt. The partnership negotiates a reduction in the mortgage but retains ownership of the apartment project. As the result of the reduction in the mort |
| U41. With respect to a unitary business group, what is the liability of the individual entities that make up the group for payment of the tax? If payment is not made, which member will be charged with penalties and interest? |
| Mi36. If a taxpayer that is a unitary business group has a business loss carry forward under MCL 208.1201(5), what happens to the business loss carry forward if membership in the unitary business group changes? |
| C42. For purposes of the Small Business Alternative Credit under MCL 208.1417, do the rules of attribution attribute the allocated business income related shareholder to determine whether the taxpayer is disqualified from the credit? |
| Mi37. Are mortgage companies financial institutions under the Michigan Business Tax? |
| U42. If a taxpayer that is a unitary business group has a business loss carry forward under MCL 208.1201(5), what happens to the business loss carry forward if membership in the unitary business group changes? |
| U43. At what point in time must two entities meet the test for being members of a unitary business group? |
| U44. An individual owns a controlling interest in multiple limited liability companies that hold rental property |
| A34. The first MBT annual returns could be due before MBT forms are released to the taxpayer public. Will penalties be waived for these first MBT returns if taxpayers make a good-faith guess as to liability? |
| B36. MCL 208.1201(2)(h) provides a deduction from the business income tax base for self employment net earnings except to the extent that the net earnings represent a reasonable return on capital. What is a "reasonable return on capital"? |
| C43. Is a staffing company as defined in section 113(6)(d)(ii) eligible for
the section 403 compensation credit on wages etc. paid to the personnel it
supplies to its customers? |
| M59. What qualifies as purchases from other firms for mortgage companies? |
August 21, 2008 |
| Fi1. The MBT's film production credit (MCL 208.1455) provides, in part, a credit calculated as a specified percentage of "direct production expenditures". How will the criteria expressed in the definition of "direct production expenditures" |
| Fi2. a) Is a fee paid to a business located outside Michigan for processing a film production company's payroll at a location outside Michigan a qualified expense?
b) If not, does the answer change if an employee or agent is present in Michigan to |
| Fi3. Is the expense for production insurance paid to an out-of-state insurance company through a Michigan based broker/agent a qualified direct production expenditure? |
| Fi4. Does the purchase of tangible personal property through an 800 number answered outside of Michigan and delivered from a warehouse outside of Michigan qualify as a direct production expenditure if the seller collects and remits Michigan sales/u |
| Fi5. Is the rental of specialized motion picture equipment from a vendor located outside Michigan (and whose inventory is also located outside Michigan) a qualified direct production expenditure if the rental is handled by a Michigan based rental v |
| Fi6. Tax Return Filing: a) Is a taxpayer required to file an MBT tax return in order to obtain a film credit or refund?; b) If so, may the return be filed early (before the end of the return year)? |
| Fi7. Does a production company that fails to withhold or insure that the personal services company ("PSC") or professional employment organization ("PEO") withholds lose an otherwise available film credit? |
| Fi8. Do non-permanent fixtures such as honeywagons (a type of multi-room trailer used by film and television productions) and star trailers (larger trailers typically used by celebrities) qualify for the infrastructure credit? |
| Fi9. Are fringe benefits paid to crew members such as the employer's share of FICA, health insurance, and so forth eligible for the Film Production Credit? If so, are these expenditures considered "direct production expenditures" eligible for a 40 |
| Fi10. MCL 208.1455 provides for an MBT Film Production Credit "equal to 42% of direct production expenditures for a state certified qualified production in a core community." What exactly does "in a core community" mean?" Where the production is |
August 19, 2008 |
| B31. If a C corporation owns 56% of a flow-through entity, and the two meet the MBT definition of a unitary group, how does the corporation report all of the income of the flow-through entity when all it receives from the entity is a K-1? Also, do |
| U37. Is it possible to have a unitary group of financial institutions under the MBT? How will such groups file a combined return? |
| M56. Are retailers who drop ship products from suppliers to customers within and outside of Michigan entitled to deduct the cost of these items from gross receipts as purchases from other firms? |
| C37. What is the proper treatment for an SBT carryforward credit which has only one year of carryforward remaining under the SBT dictated lifespan? Does MCL 208.1401 extend the life of the credit, or is it limited by the original SBT term? |
| B32. Are royalties received from a foreign entity included in the tax base of the MBT? |
| B33. Does business income include casual transactions or isolated sales? |
| C38. Do dividends that represent distribution of previously taxed S corporation earnings qualify as dividends for purposes of determining an "active shareholder"? |
| M57. Are royalties received from a foreign entity included in the tax base of the MBT? |
| U38. For purposes of the private equity fund credit under MCL 208.1453, if a private equity fund manager is an entity that is a member of a unitary business group, does the calculated credit percentage apply to the tax liability of the
entire uni |
| B34. How should inter-company transactions between members of a unitary business group be eliminated when the members have different year ends? |
| C39. For purposes of the private equity fund credit under MCL 208.1453, if a private equity fund manager is an entity that is a member of a unitary business group, does the calculated credit percentage apply to the tax liability of the entire unita |
| M58. How should inter-company transactions between members of a unitary business group be eliminated when the members have different year ends? |
| U39. Are partners deemed to own each others' holdings by attribution under section 318 of the Internal Revenue Code? |
| C40. Is compensation under the MBT reported on a cash or accrual basis? |
| U40. A dental practice organized as a sole proprietorship became a
professional limited liability company ("PLLC") effective January 1, 2008. For
federal income tax purposes, the PLLC is a disregarded entity and the member
reports h |
| Mi35. Will public libraries receive any moneys from the Michigan Business Tax? There was a provision in the Single Business Tax Act that directly funded public libraries, will this continue under the MBT? |
| N12. Under the MBT nexus standards for the modified gross receipts tax, is owning a partnership interest considered physical presence in Michigan? The partnership owns rental real property in Michigan. |
August 18, 2008 |
| U36. Are foreign entities includable in unitary business group? What if the foreign entity is the single member of a domestic single member limited liability company disregarded for federal tax purposes? |
| Mi34. What is the meaning of the acronym FIRE which appears in the presentation entitled MBT Overview-August 1, 2007 on the MBT Website? |
| A33. Can a taxpayer who claims an error was made in the calculation of an
MBT quarterly estimated payment request a refund of that payment without filing
an annual MBT return? |
June 12, 2008 |
| C33. How are gross receipts computed on an installment sale of a capital asset? Is the realized installment sale gain included in the two tax bases? How is the investment tax credit (ITC) affected? |
| C34. What kinds of expenses qualify for the MBT credit under MCL 208.1451 that applies to beverage distributors who originate deposits on beverage containers? |
| C35. If two shareholders of a C corporation (X Corp) are themselves C corporations (Y Corp & Z Corp) & one of Y Corp's shareholders is paid a management fee for managing the business of X Corp, does the management fee factor into the ... |
| C36. Can a taxpayer use data from its SBT tax periods in calculating the loss adjustment for purposes of determining eligibility for the Alternative Small Business Credit under MCL 208.1417? |
| Mi32. Can a taxpayer use data from its SBT tax periods in calculating the loss adjustment for purposes of determining eligibility for the Alternative Small Business Credit under MCL 208.1417? |
| Mi33. What kinds of expenses qualify for the MBT credit under MCL 208.1451 that applies to beverage distributors who originate deposits on beverage containers? |
| M55. How are gross receipts computed on an installment sale of a capital asset? Is the realized installment sale gain included in the two tax bases? How is the investment tax credit (ITC) affected? |
May 30, 2008 |
| A32. Will Voluntary Disclosure continue with the Michigan Business Tax? |
| B29. We manufacture customized tooling systems, which we then sell to our customer. After the sale, although the customer owns the tooling, it physically remains at our plant, and we use the tooling to manufacture the customer's product... |
| B30. How are accounts receivable factoring companies treated for purposes of the Michigan Business Tax Act (MBTA)? |
| Mi29. Are condominium, homeowners, and timeshare associations taxed under IRC 528 or IRC 277 exempt from the MBT? |
| Mi30. Will Voluntary Disclosure continue with the Michigan Business Tax? |
| M52. We manufacture customized tooling systems, which we then sell to our customer. After the sale, although the customer owns the tooling, it physically remains at our plant, and we use the tooling to manufacture the customer's product... |
| Mi31. Does the MBT provision which states that the MBT is imposed, |
| M53. Are Michigan lottery dealers required to include the proceeds from retail lottery ticket sales when calculating gross receipts, or are they only required to include the amount of the commission that they receive on such sales? |
| M54. How are accounts receivable factoring companies treated for purposes of the Michigan Business Tax Act (MBTA)? |
| N11. Does a mail order company that does not have physical presence in Michigan and was not previously subject to the SBT, but mails catalogs to persons within Michigan and has $350,000 or more in Michigan sales have nexus for purposes of the... |
| U34. For purposes of determining a unitary business group, how is the control test interpreted and applied? |
| U35. Do the $350,000 threshold amount for taxpayer nexus under MCL 208.1200, the $350,000 threshold amount for filing of returns and payment of MBT under MCL 208.1505, and the range of gross receipts between $350,000 and $700,000 concerning the... |
April 15, 2008 |
| B26. Does the deduction for net earnings from self employment exempt self-employed individuals from taxation under the MBT? |
| B27. Under the Michigan Business Tax Act (MBTA) will a taxpayer receive a deduction for the modified gross receipts tax paid when calculating the business income tax base? |
| B28. Is the gain recognized on the one time sale of business assets and goodwill by an entity to another entity taxed under the Michigan Business Tax (MBT)? |
| Mi25. Does the MBT follow the federal check-the-box regulations? |
| Mi26. When is the final SBT return due for a fiscal year taxpayer? Can a fiscal year filer request an extension for the final SBT return? |
| Mi27. Are controlled foreign corporations ("CFC's") under IRC 957 taxpayers under the MBT? Can controlled foreign corporations be members of a unitary business group? What if the controlled foreign corporation is a disregarded entity of a U.S. ... |
| Mi28. Are single member limited liability companies and qualified subchapter S subsidiaries ("QSubs") disregarded for federal tax purposes also disregarded under the MBT? |
| M49. Is the gain recognized on the one time sale of business assets and goodwill by an entity to another entity taxed under the Michigan Business Tax (MBT)? |
| M50. Does the deduction for net earnings from self employment exempt self-employed individuals from taxation under the MBT? |
| M51. Are vehicles taken as trade-ins and later sold by an auto dealer considered "purchases from other firms" under the MBT, and thus deductible from gross receipts in determining the modified gross receipts tax base? |
| U30. (Answer rescinded, replaced by U36.) Are foreign entities includable in unitary business group? What if the foreign entity is the single membe |
| U31. Are controlled foreign corporations ("CFC's") under IRC 957 taxpayers under the MBT? Can controlled foreign corporations be members of a unitary business group? What if the controlled foreign corporation is a disregarded entity of a U.S. ... |
| U32. For a unitary business group, MBT Section 201(3) requires the deduction of items of income and related deductions including dividends between members of the group when computing the business income tax base. Section 203(3) requires the ... |
| U33. What is a unitary business group? |
April 9, 2008 |
| U18. How does the MBT filing threshold apply to a unitary business group comprised of several members if one or more of the members has apportioned gross receipts of less than $350,000? |
April 1, 2008 |
| B24. Is the sale of stock by a stockholder in a closely held corporation back to the corporation or another stockholder subject to MBT? |
| B25. I am a 100% shareholder of a corporation that does business in Michigan. I am a nonresident of Michigan. The corporation is organized as a C corporation. I sell 100% of the stock of the corporation which results in a capital gain... |
| C32. What expense items are included in compensation for purposes of the compensation credit provided for at MCL 208.1403(2)? What accounting method is used to determine compensation? |
| Mi23. Can a unitary group, as defined in the MBT, enter into a voluntary disclosure agreement with the Department of Treasury under MCL 205.30c if one member of the group would be disqualified on its own? |
| Mi24. If a taxpayer is disqualified from voluntary disclosure, available at MCL 205.30c, under the Single Business Tax, is the taxpayer disqualified under the Michigan Business Tax? Specifically, if a taxpayer filed SBT returns, is it considered.. |
| M46. Is the sale of stock by a stockholder in a closely held corporation back to the corporation or another stockholder subject to MBT? |
| M47. Are dividends from subsidiaries and interest income from unrelated parties included in the modified gross receipts tax base in the MBT? |
| M48. I am a 100% shareholder of a corporation that does business in Michigan. I am a nonresident of Michigan. The corporation is organized as a C corporation. I sell 100% of the stock of the corporation which results in a capital gain... |
| U26. Can a unitary group, as defined in the MBT, enter into a voluntary disclosure agreement with the Department of Treasury under MCL 205.30c if one member of the group would be disqualified on its own? |
| U27. How are the Business Income and Modified Gross Receipts tax bases calculated for a unitary business group? |
| U28. How will MCL 208.1503, which gives taxpayers the choice of two filing methods for the first MBT return, apply to a unitary group where members of the group have different tax years? |
| U29. How must a unitary business group file its combined return when members of the group have different tax years? |
March 17, 2008 |
| A31. When is the final short period Single Business Tax (SBT) return due for a fiscal year taxpayer? If the taxpayer chooses the annual method for calculating the final SBT liability, how does it file timely for the fiscal year that is required... |
| B19. What is the definition of intangible asset as used in computing the business income tax base? |
| B20. Our company adds a handling charge to all customer invoices. Is this handling charge taxable under the MBT? |
| B21. A real estate limited partnership owns an apartment project in Michigan. The partnership is in the process of selling the apartment project to avoid foreclosure. The apartment project is the partnership's only asset and the partnership will... |
| B22. How is a like-kind exchange treated under the MBT? |
| B23. Is an individual person who earns more than $350,000 in interest and dividends for the tax year subject to the MBT? Are the person's capital gains from sales of stock subject to the MBT? |
| C31. My company intends to purchase a significant piece of business equipment in the near future. This equipment is the type of property that is or will become eligible for depreciation for federal tax purposes. Under the MBT, can my company ... |
| M40. Our company adds a handling charge to all customer invoices. Is this handling charge taxable under the MBT? |
| M41. My company intends to purchase a significant piece of business equipment in the near future. This equipment is the type of property that is or will become eligible for depreciation for federal tax purposes. Under the MBT, can my company... |
| M42. A real estate limited partnership owns an apartment project in Michigan. The partnership is in the process of selling the apartment project to avoid foreclosure. The apartment project is the partnership's only asset and the partnership will... |
| M43. How is a like-kind exchange treated under the MBT? |
| M44. Is an individual person who earns more than $350,000 in interest and dividends for the tax year subject to the MBT? Are the person's capital gains from sales of stock subject to the MBT? |
| M45. How is "fuel" defined for purposes of the "purchases from other firms" deduction under MCL 208.1113(6)? Does it include the cost of gas for all of a business' automobiles currently in use, including owned and leased vehicles? Does it... |
| N9. Non-U.S. corporations qualify as taxpayers under the MBT. For purposes of the business income tax component of the MBT, will the Department recognize the protection of PL 86-272 for non-U.S. corporations? |
| N10. Does the protection of Public Law 86-272 apply to financial institutions? |
March 6, 2008 |
| A30. Will a taxpayer be required to make a payment with an extension request or is the listing of estimated payments made going to be accepted as it is in the Single Business Tax? |
| B18. May taxpayers, including corporations and partnerships, take the IRC 199 deduction for MBT purposes? |
| C28. Under MCL 208.1403(2), a taxpayer may claim a credit against the MBT equal to a specified percentage of the taxpayer's "compensation in this state." What is the definition of "compensation in this state"? |
| C29. How is the Small Business Alternative Credit under MCL 208.1417 calculated by a taxpayer that is a unitary business group? How do the disqualifiers and percentage reducers work? |
| C30. How do foreign persons with no U.S. federal taxable income calculate adjusted business income for purposes of the Small Business Alternative Credit under MCL 208.1417? |
| M38. May taxpayers, including corporations and partnerships, take the IRC 199 deduction for MBT purposes? |
| M39. May any taxpayer separately itemize and collect the tax imposed under the Michigan Business Tax Act ("MBTA") from its customers in addition to sales price? |
| N8. An out-of-state company has a remote employee located in Michigan. The out-of-state company has no sales or business activities in Michigan. Does the out-of-state company have nexus with Michigan under the MBT? |
| U23. (Answer rescinded, replaced by U48) How does a unitary business group register under the MBT? |
| U24. If five or fewer persons who are unrelated individuals, estates or trusts own a controlling interest in a brother-sister group of entities, will that satisfy the control test for purposes of qualifying as a unitary business group? |
| U25. Can brother-sister corporations wholly owned by a single person be members of a unitary business group? If so, how are the tax bases calculated? |
February 28, 2008 |
| A28. The SBT has a Notice of No Return, Form C-8030 to be filed by taxpayers who were not required to file. Will there be a similar MBT form? |
| A29. How must a fiscal year taxpayer calculate quarterly estimated payments if one quarter straddles the period in which the SBT ends and the MBT begins? |
| B15. Does the sale by an individual of a direct investment in a corporation, partnership or LLC that is not traded on a public exchange constitute "personal investment activity" such that the income and proceeds from such a sale are exc |
| B16. Public Act 145 of 2007 amended the MBT to exclude certain personal investment activities from business income and gross receipts. |
| B17. Limited liability companies are included in the efinition of "person" under the MBT. Assuming that the federal "check the box" rules are followed, does the business income adjustment set forth at section 201(2)(e), |
| C24. Can a pre-2008 Brownfield credit or Historic Preservation credit of a unitary business group member be used in 2008 and thereafter against the tax liability of the entire unitary business group? |
| C25. Regarding the industrial personal property tax credit under the MBT, will the Department continue to look to the parcel classification assigned by the local property tax assessor for qualification for the credit, as it has done under the |
| C26. The MBT Act provides the following credits will be taken sequentially before any other credits: compensation and investment credits (MCL §208.1403) |
| C27. MCL §208.1403(3)(d)-(f) provides for investment credit recapture. The recapture language includes the limiters "to the extent used and at the rate used." Does this limiting language only apply to assets acquired during SBT tax years? |
| M30. Does the sale by an individual of a direct investment in a corporation, partnership or LLC that is not traded on a public exchange constitute "personal investment activity" such that the income and proceeds from such a sale are exclu |
| M31. Public Act 145 of 2007 amended the MBT to exclude certain personal investment activities from business income and gross receipts. Which taxpayers may exclude personal investment activity from business income and gross receipts? What about fa |
| M32. A unitary business group under the MBTA is required to file a combined return. For purposes of calculating the unitary business group's modified gross receipts tax base, does the group eliminate all inter-company transactions between members o |
| M33. How is the "purchases from other firms" subtraction determined? The statute uses the term "purchased" and "acquired"; neither of which are defined in the law. What method of accounting will be used |
| M34. Is an SBT business loss related to a final short period SBT return that will be applied to the MBT based on a full twelve-month year or on the short period year? If the taxpayer uses the proration method to calculate its final |
| M35. Is a fiscal year taxpayer required to apply its final year SBT business loss against its first short period MBT return? |
| M36. The definition of "modified gross receipts tax base" makes no provision for a negative modified gross receipts tax base. Will Treasury administratively allow a carryforward of a negative modified gross receipts tax base? |
| M37. To qualify as "materials and supplies" or "purchases from other firms" deductible from gross receipts under MCL 208.1113(6), must assets be directly related to inventory or vice versa? |
| Mi21. Will a taxpayer whose final SBT return is for a period of less than four months need to remit SBT estimates? For example, will a taxpayer with a fiscal year end of September 30, 2008, |
| Mi22. For purposes of calculating the $350,000 filing threshold in section 505(1); will "gross receipts" as defined in section 111 be used, or will
the filing threshold be determined by "sales" as defined in section 115? What |
| N5. For purposes of apportionment, in determining whether a Michigan-based taxpayer has nexus with a state other than Michigan pursuant to section 301(3), must gross receipts in any "one" state or in all states equal or exceed $350,000 in |
| N6. Regarding the MBT nexus standard found in section 200(1), which is based upon the taxpayer actively soliciting sales in Michigan and having "gross receipts of $350,000.00 or more sourced to this state," will the $350,000.00 be calcula |
| N7. Please provide examples of when and how an internet web site can be determined to be "purposeful" or "active solicitation". |
| U20. A unitary business group under the MBTA is required to file a combined return. For purposes of calculating the nitary business group's modified gross receipts tax base, does the group eliminate all inter-company transactions between members of |
| U21. When members of a unitary business group have different accounting methods (for example, cash and accrual) is uniformity required or do they report using each member's accounting method? |
| U22. Can a pre-2008 Brownfield credit or Historic Preservation credit of a unitary business group member be used in 2008 and thereafter against the tax liability of the entire unitary business group? |
February 15, 2008 |
| A26. (Answer rescinded, replaced by A30)
Will a taxpayer be required to make a payment with an extension request or is the isting of estimated |
| A27. Does the $350,000 filing threshold apply to just the gross receipts tax or to both the gross receipts and business income taxes? |
| Ap5. Under MCL 208.1115, "sales" means "[f]or taxpayers not engaged in any other business activities, sales include interest, dividends, & other income from investment assets & activities & from trading assets & activities... |
| B12. Under the MBT, will there be a depreciation deduction, or will Michigan conform to federal depreciation rules? |
| B13. For purposes of applying section 201(2)(f)(ii) of the MBTA, does the phrase "subject to tax in another jurisdiction" refer only to taxation by another state, or does it also include taxation by a foreign country? |
| B14. Is interest and dividend income included in business income under the Michigan Business Tax (MBT)? |
| C22. Is the farmland preservation credit available under the Michigan Business Tax? |
| C23. How were the rates of the Compensation Credit, the Investment Tax Credit, and the Research and Development Credit impacted by the passage of PA 145, which added the surcharge to the MBT? |
| Mi20. Is the MBT going to accept the federal treaty benefit on the 1120F? |
| M26. Does the Modified Gross Receipts Tax component of the Michigan Business Tax Act tax capital gains of investors, including trusts, Family Limited Partnerships and individuals? |
| M27. Under the MBT, will there be a depreciation deduction, or will Michigan conform to federal depreciation rules? |
| M28. Do wholesale gasoline purchases and applicable excise taxes paid by a gasoline retailer qualify as "purchases from other firms" under Section 113(6) of the Michigan Business Tax Act ("MBTA")? |
| M29. Does partnership income constitute gross receipts of the partner for purposes of the modified gross receipts tax portion of the MBT? |
| U19. Is an individual a member of a unitary business group with the entities in which the individual has a controlling interest? |
January 14, 2008 |
| All questions under this date replaced a previous question. |
| A22. Will taxpayers need to calculate the business income, modified gross receipts, and surcharge separately and pay 85% of each to meet the estimated tax payment safe harbor provision in order to avoid interest? |
| A23. How are quarterly estimates calculated? |
| A24. Will a safe harbor be allowed for 2008 estimates based on the 2007 SBT return |
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