Form 4746 - Business Income Worksheet printable pdf download

Michigan Department of Treasury

FEIN or TR Number

4746 (10-12), Page 1

UBG Member FEIN or TR Number

Business Income Worksheet

Complete the appropriate parts below, based on the person’s organization type. Part 1 is for an Individual or Fiduciary; Part 2 is for a C Corporation (or a

person filing federal returns as a C Corporation); and Part 3 is for a Partnership or S Corporation (or a person filing a federal return as a Partnership or an S

Corporation). This worksheet will calculate business income as defined by law in most circumstances. Taxpayers and tax professionals are expected to be

familiar with uncommon situations within their experience, which produce business income not identified by specific lines on this worksheet, and report that

amount on the most appropriate line. Include an attachment explaining that line. The Michigan Department of Treasury may adjust the figure resulting from

this worksheet to account properly for such uncommon situations. Complete and attach this worksheet to your return. Unitary Business Groups (UBG) must

complete and attach a worksheet for each member.

Part 1: IndIvIduals and FIducIarIes

1. U.S. Form 1040, Schedule C or C-EZ, net profit/loss............................................................................................

2. U.S. Form 1040, Schedule D, gain/loss

(a)

.............................................................................................................

3. U.S. Form 1040, Schedule E, line 26 rent and royalty income/loss ......................................................................

4. U.S. Form 4797 gain/loss not included in Schedule D

(a)

.......................................................................................

5. Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent

deducted from federal taxable income ..................................................................................................................

6. Other Income. Include an attachment explaining this line. ....................................................................................

7. total business income before adjustment. Add lines 1 through 6 .....................................................................

8. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative,

enter as negative:

a. Net bonus depreciation adjustment

(b)

.............................................................................................................

8a.

b. Gain/loss adjustment on the sale of an eligible depreciable asset

(c)

..............................................................

8b.

9. Add lines 8a and 8b. If negative, enter as negative..............................................................................................

10. total business income after adjustment. Add lines 7 and 9. Carry amount to Form 4567, line 28, or Form

4583, line 10. For a UBG member, carry amount to Form 4580, Part 2A, line 30 .................................................

10.

Part 2: c corPoratIons

11. Federal taxable income from U.S. Form 1120 .......................................................................................................

11.

12. Domestic Production Activities deduction based on IRC § 199 reported on U.S. Form 8903, to the extent

deducted from federal taxable income ..................................................................................................................

12.

13. Miscellaneous. Include an attachment explaining this line ....................................................................................

13.

14. total business income before adjustment. Add lines 11, 12 and 13 ...............................................................

14.

15. Adjustments due to decoupling of Michigan depreciation from section 168(k) of IRC. If adjustment is negative,

enter as negative:

a. Net bonus depreciation adjustment

(b)

.............................................................................................................

15a.

b. Gain/loss adjustment on the sale of an eligible depreciable asset

(c)

..............................................................

15b.

16. Add lines 15a and 15b. If negative, enter as negative..........................................................................................

16.

17. total business income after adjustment. Add lines 14 and 16. Carry amount to Form 4567, line 28, or

Form 4583, line 10. For a UBG member, carry amount to Form 4580, Part 2A, line 30 .......................................

17.

Part 3: PartnershIPs and s corPoratIons

18. U.S. Form 1065, or 1120S Schedule K, Income (loss):

a. Ordinary income/loss .......................................................................................................................................

18a.

b. Net real estate rental income/loss ...................................................................................................................

18b.

c. Net other rental income/loss ............................................................................................................................

18c.

d. Interest, dividend, and royalty income .............................................................................................................

18d.

e. Net short-term gain/loss ..................................................................................................................................

18e.

f. Net long-term gain/loss....................................................................................................................................

18f.

g. Other portfolio income/loss ..............................................................................................................................

18g.

h. Guaranteed payments to partners or wages paid to a member of a LLC Partnership ....................................

18h.

i. Other net gain/loss under section 1231 ...........................................................................................................

18i.

j. Other income. Include an attachment explaining this line ...............................................................................

18j.

19. total income/loss. Add lines 18a through 18j ......................................................................................................

19.

Continued on Page 2

Form 4746 - Business Income Worksheet

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