PDF document

- 1 -

Reset Form
Michigan Department of Treasury - City Tax Administration
5462 (11-20)
Check if this is an
amended return.
2020 City of Detroit Income Tax — Estates and Trusts See instructions.
Issued under authority of Public Act 284 of 1964, as amended.
1. Return is for the city of City Code (see instructions)
Return is due April 15, 2021. DETROIT 170
MM-DD-YYYY MM-DD-YYYY

2. Return is for calendar year 2020 or for tax year beginning: and ending:
3. Name of Estate or Trust 4. Federal Employer Identification Number (FEIN)

5. Title of Fiduciary

6. Address City State ZIP/Postal Code Country Code

7. Type of Return (check one) 8. If this is amended due to a federal audit, enter the federal determination date
Estate Simple Trust Complex Trust

INCOME AND ADJUSTMENTS
9. Net income (or loss) from business located in Detroit (include federal schedule) ........................................... 9. 00
10. Net income (or loss) from rental property in Detroit (include federal schedule) .............................................. 10. 00
11. Net gain (or loss) from sale or exchange of tangible property in Detroit (include federal schedule) ............... 11. 00
12. Other Detroit income (include federal schedule) ............................................................................................. 12. 00
13. Add line 9 through line 12 ................................................................................................................................ 13. 00
14. Total distributable income from Schedule G, line 16 ....................................................................................... 14. 00
15. Subtract line 14 from line 13 ............................................................................................................................ 15. 00
16. Exemption Amount (estate $600; simple trust $300; complex trust $100) ...................................................... 16. 00
17. Net income. Subtract line 16 from line 15........................................................................................................ 17. 00
18. Renaissance Zone Deduction (include Renaissance Zone Approval Letter) .................................................. 18. 00
19. Total income subject to tax. Subtract line 18 from line 17 ............................................................................... 19. 00
20. Tax. Multiply line 19 by 1.2% (0.012) ............................................................................................................... 20. 00

PAYMENTS AND CREDITS
21. Tax withheld ..................................................................................................................................................... 21. 00
22. 2020 estimated payments, credits, and other payments (see instructions)..................................................... 22. 00
23. Total payments and credits. Add line 21 and line 22 ....................................................................................... 23. 00

PAYMENT DUE OR OVERPAYMENT
24. Payment Due. Subtract line 23 from line 20. If line 20 is less than line 23, leave blank and continue
to line 25. ......................................................................................................................................................... 24. 00
25. Overpayment. Subtract line 20 from line 23 .................................................................................................... 25. 00
26. Credit Forward. Amount on line 25 to be credited forward and used as an estimate for next tax year ........... 26. 00
27. Refund. Subtract line 26 from line 25 ............................................................................................................. 27. 00

Taxpayer Certification. I declare under penalty of perjury that the information in this Preparer Certification. I declare under penalty of perjury that this
return and attachments is true and complete to the best of my knowledge. return is based on all information of which I have any knowledge.
Preparer’s PTIN, FEIN or SSN
By checking this box, I authorize the Michigan Department of Treasury
to discuss my return with my preparer.
Authorized Signer’s Name (print or type) Date Preparer’s Business Address and Telephone Number (print or type)

Title Telephone Number

ALL RETURNS, mail to: Michigan Department of Treasury, City Tax Administration, PO Box 30813, Lansing MI 48909
WITH PAYMENT. Pay amount on line 24. Make check payable to “State of Michigan - Detroit.” Print the taxpayer FEIN, tax year, and “Form 5462” on the
front of the check. Do not staple the check to the return.

Continue on Page 2

- 2 -

5462, Page 2 
                                                                                               FEIN 

                  SCHEDULE G 
                  Complete for Resident Beneficiaries Only 

             NAME                                                              SOCIAL SECURITY NUMBER                                           AMOUNT DISTRIBUTABLE 

1.                                                                                                                                                    00 

2.                                                                                                                                                    00 

3.                                                                                                                                                    00 

4.                                                                                                                                                    00 

5.                                                                                                                                                    00 

6.                                                                                                                                                    00 

7.                                                                                                                                                    00 

8.                                                                                                                                                    00 

9.                                                                                                                                                    00 

10.                                                                                                                                                   00 

11.                                                                                                                                                   00 

12.                                                                                                                                                   00 

13.                                                                                                                                                   00 

14.                                                                                                                                                   00 

15.                                                                                                                                                   00 

16.  Total distributable income — residents. Carry total to Form 5462, line 14  ...............................................................       00

- 3 -

                                            Instructions for Form 5462 

                           City of Detroit Income Tax — Estates and Trusts 

Who Must File?                                                           Penalty and Interest 
Each estate with gross income  of more than $600, each                   If the fiduciary payment is late, Treasury will add a penalty of 
simple trust (one that is required to distribute all of its income       1 percent of the tax due. Penalty will increase by an additional 
currently) with gross income of more than $300, and all other            1 percent per month, or fraction thereof, up to a maximum of 
trusts (complex trusts) with gross income of more than $100 of           25 percent of the tax due. If the fiduciary payment is late, add 
Detroit taxable income who are required to file a U.S. Income            penalty  and  interest  to  the  amount  due.  For  interest  rates  for 
Tax Return for Estates and Trusts (U.S. Form 1041), must file a          2021, visit www.michigan.gov/citytax or call 517-636-4486. 
City of Detroit Income Tax — Estates and Trusts  return (Form 
5462) and complete Schedule G. A business trust that files as            Extensions 
a corporation with the Internal Revenue Service and is “doing            An extension of time to file may be requested by completing 
business”  in  Detroit  must  file  a  City  of  Detroit  Corporate      and  filing  the Application  for Extension  of  Time  to  File  City 
Income Tax Return (Form 5297).                                           Income  Tax  Estates and Trusts Return   (Form  5463)  sending 
                                                                         Treasury payment of the estimated tax liability. Treasury may 
Taxable Income                                                           grant  a  six-month  extension  for  fiduciary  returns.  Treasury 
The  taxable  income  of  the  trust  or  estate  will  only  include    does not send a notice of approval. 
those  kinds  of  income  taxable  to  a  nonresident.  Detroit 
                                                                         An extension of time to file is not an extension of time to pay. 
resident beneficiaries will report their portion of distributable 
                                                                         If the tax due is underestimated and the payment made with the 
net income on their individual returns and should receive this 
                                                                         extension request is insufficient, interest is due on the unpaid 
information from the fiduciary. 
                                                                         amount. Compute interest from April 15 (or the due date of the 
Distributable and nondistributable income from the following             return) to the date the tax is paid. Interest is 1 percent above 
sources is subject to tax:                                               prime rate and is adjusted on July 1 and January 1. 
  • All gross income that the descendant had a right to receive          When  5462  is  filed,  include  the  amount  of  tax  that  was  paid 
and  that  is  not  properly  includible  on  the  descendant’s  final   with the extension request on line 22. 
return,  including  compensation  received  as  an  employee  for 
work done or services performed in Detroit.                              Amended Return 
  • Net  profits  of  a  business  or  profession  based  on  business   To amend a return, check the box at the top of page one and 
activity conducted in Detroit whether or not such business or            complete the entire return, using corrected data as necessary. 
profession is located in Detroit.                                        Attach  a  statement  explaining  the  reason  for  the  amended 
  • Net profits from rental of real and tangible personal property       return.  If  a  refund  was  issued  with  a  previously  filed  return, 
located in Detroit.                                                      include the amount of that refund in the total on line 22. 
  • Gain on the sale or exchange of real and tangible personal           Include all forms and documents filed with the original return, 
property located in Detroit.                                             even if not amending those items. Do not include a copy of the 
  • Income from a partnership, estate or trust taxable under the         previous return. 
Detroit Income Tax Ordinance.                                                                         Treasury  must  be  notified  of  any 
                                                                         U.S. Form 1041 changes: 
                                                                         changes to the estate’s or trust’s U.S. Form 1041 if the items 
Due Date                                                                 changed  affect  the  Detroit  liability.  File  an  amended  return 
Returns  are  due  on  or  before  April  15,  2021.  If  the  due  date within 180 days of the change and include payment of the tax 
falls on a Saturday, Sunday or holiday, the due date is the next         due. If there was an overpayment of tax, file an amended return 
business day.                                                            to request a refund. 
Keep a copy of the return and all supporting schedules for six 
                                                                         Line-by-Line Instructions 
years. 
                                                                         Line numbers not listed are explained on the form. 
Mail the completed return to: 
                                                                         Line 2: If not a calendar-year taxpayer, enter the beginning and  
      Michigan Department of Treasury                                    ending dates (MM-DD-YYYY) that correspond to the taxable 
      City Tax Administration                                            period included in this return. 
      PO Box 30813 
      Lansing MI 48909                                                   Tax  year  means  the  calendar  year,  or  the  fiscal  year  ending 
                                                                         during the calendar year, on which the tax base of a taxpayer 
If a tax due is reported on line 24, include a check or money            is computed. If a return is made for a part of a year, tax year 
order payable to “State of Michigan - Detroit.” Write the FEIN,          means  the  period  for  which  the  return  is  made.  Generally,  a 
tax year, and “Form 5462” on the check.                                  taxpayer’s tax year is for the same period as is covered by its 
                                                                         federal income tax return.

- 4 -

Line 4: Enter the Federal Employer Identification Number Gain or loss on property purchased prior to July 1, 1962 must
(FEIN) of the estate or trust. Be sure to use the same account be determined by one of the following methods:
number on all City of Detroit forms related to this estate or
• The base may be the adjusted fair market value of the
trust. The FEIN from line 4 must be repeated at the top of page
property on July 1, 1962, or
2.
• Divide the number of months the property has been held
Line 5: Enter the complete address, including the two-digit since July 1, 1962 by the total number of months the property
abbreviation for the country code. was held and apply this fraction to the total gain or loss as
reported on estate or trust U.S. Form 1041.
A complete list of country codes is available online at
michigan.gov/citytax. Commonly used country codes Line 12: Enter amount from federal Form 1041, line 8, that
are listed below: pertains to other income to the extent it was earned in Detroit.
United States US Report estate or trust share of Detroit partnership income
(or loss). If the estate or trust is a shareholder in a tax-option
Canada CA corporation that has elected to file under Subchapter S of the
Mexico MX Internal Revenue Code it is not required to report a distribution
nor may it deduct its share of any loss sustained by the
NOTE: Any correspondence regarding the return filed and/or
refund will be sent to the address provided on this form. corporation.
Attach a copy of the federal Schedule K-1 for estate or trust
Income and Adjustments
share of partnership losses on Detroit activities and federal
Line 9: Enter amount from federal Form 1041, line 3, that Form 8582 (Passive Activity Loss Limitations).
pertains to the net profit or (loss) from the operation of a
business or profession to the extent it results from work done, Other Detroit income subject to tax that is not reported
services rendered or other business activities conducted in elsewhere, including all gross income that the descendant
Detroit. A copy of Federal Schedule C must be submitted for has a right to receive and that is not properly includible on
each business conducting activity in Detroit. the descendant’s final return. List each item of other income
excluded or adjusted. Attach a separate schedule if necessary.
Line 10: Enter amount from federal Form 1041, line 5, that If excluding or adjusting reported ordinary gain or loss, attach
pertains to net profit or loss from rentals or real and tangible a copy of Schedule 5 to the return.
personal property located in Detroit. All income reported on
the federal Schedule E that comes from business activity in Line 14: Complete Schedule G for resident beneficiaries
Detroit or property located in Detroit is income. including each beneficiary’s name, Social Security number,
and amount distributable. Enter total distributable income from
The following income reported on federal Schedule E is line 16 of Schedule G on line 14. If additional space is needed,
excludable: income from business activity or property outside attach a schedule similar to Schedule G identifying additional
Detroit; and income from other estates and trusts. beneficiaries by consecutive numbers.
Passive Loss Limitations as set forth in the Internal Revenue Line 16: Estates and trusts are allowed the same exemptions as
Code apply when taking the rental loss deduction on the City under the Federal Internal Revenue Code ($600 for an estate,
of Detroit Resident Income Tax Return (Form 5118) may apply. $300 for a simple trust and $100 for a complex trust). Enter
Line 11: Enter amount from Federal Form 1041, Line 4 that exemption amount.
pertains to income to the extent the gain or loss is from sales Line 18: Certain geographic areas within the filing city were
of property located in Detroit. A capital loss from property designated as Renaissance Zones. This designation grants tax
located in the city is allowed to the same extent allowed under relief to qualified estates and trusts located and conducting
the Internal Revenue Code. An unused capital loss may be business activity within a filing city Renaissance Zone. In
carried over to future tax years. The capital loss carryover for conjunction with the designation of these zones, the Detroit
Detroit may be different from the carryover for federal income Income Tax Ordinance was amended effective January 1, 1997,
tax purposes. A deferred capital gain from an installment sales to include a Renaissance Zone deduction.
or similar exchange of property located in Detroit is taxable
in the year recognized for federal income tax purposes. All If applicable, residents should enter Renaissance Zone
income reported on the federal Schedule E that comes from deduction in line 18 and attach Renaissance Zone approval
business activity in Detroit or property located in Detroit is letter.
income.
Payments and Credits
NOTE: Gains or losses on sale of intangible assets (i.e., stocks, Line 21: Enter the amount of Detroit tax withheld. Attach a
bonds, etc.) are not taxed nor deductible by estates and trusts copy of all documents showing the reported tax withheld.
on the Detroit return. The gains and losses from the sale or
Line 22: Enter total payments made on a “2020 City of Detroit
exchange of real and tangible personal property located in
Income Tax Estates and Trusts Quarterly Voucher” (Form 5464).
Detroit are entered on this line. Attach schedules from U.S.
Include overpayment carried forward from the prior year and
Form 1041 to support the entry.
payments made with the “Application for Extension of Time to
File City Income Tax Estates and Trusts Return” (Form 5463).

- 5 -

Payment Due or Overpayment These instructions are interpretations of the Detroit
Line 24: If a payment is due, send payment, along with a Income Tax Ordinance. The Ordinance will prevail in
completed Form 5462, to the address detailed in the “Due any disagreement between forms or instructions and
Date” section earlier in these instructions. the Ordinance.

Line 25: If an overpayment exists, a taxpayer may elect a
refund of all or a portion of the amount and/or designate all or
a portion of the overpayment to be applied to next year’s tax
liability. Complete lines 25, 26 and 27 as applicable.
Line 26: Enter on this line the desired amount to use as an
estimated payment for the next tax year.
Line 27: Enter the amount of refund requested.
Reminder: Taxpayers must sign and date returns. Preparers
must provide a Preparer Taxpayer Identification Number
(PTIN), FEIN or Social Security number (SSN), a well as a
business name, business address and phone number.
Schedule G — Complete for Resident Beneficiaries
Only
NOTE: Schedule G must be completed if any income is
distributed. Otherwise, it is not necessary.
Line 1 through 15: Enter in the appropriate column the name,
Social Security number or Federal Employer Identification
Number (FEIN) of each beneficiary of the estate or trust and
the amount distributable to that beneficiary. Carry the total
distributable income from Schedule G, line 16, to Form 5462,
line 14.
If additional space is needed, attach a schedule similar to
Schedule G identifying additional beneficiaries by consecutive
numbers. Carry the total for all beneficiaries to Form 5462, line
14.

Other Supporting Forms
Federal Forms: Include a copy of the U.S. Form 1041.
Detroit Renaissance Zone: Include a copy of the City of
Detroit Renaissance Zone Approval Letter or Certificate if
claiming a Renaissance Zone deduction.

Resident Beneficiaries
A Detroit resident beneficiary must report their distributable
income from an estate or trust on their City of Detroit Resident
Income Tax Return (Form 5118) in the same manner and same
amounts they report the income on their federal return.
Beneficiaries should attach copies of the following items to
their Form 5118:
• U.S. Schedule K-1.
• The letter received from the fiduciary notifying him or her
of City of Detroit adjustments or City of Detroit income.

Assistance
Tax forms and instructions are available online at www.
michigan.gov/citytax. For assistance, call 517-636-5829.

PDF file checksum: 1911746601

(Plugin #1/9.12/13.0)