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2021 MI-8949, Page 3
Instructions for Completing Form MI-8949
When to File Line 4: The amount reported on MI-1040D, line 6, includes
NOTE: Only use this form to adjust your Michigan taxable this line and any amount reported on U.S. Schedule D , line 8a,
income if you have capital gains or losses attributable to one column h.
of the following: Michigan Information
• Gains or losses from the sale of certain types of properties For each asset, enter the portion of federal gain and loss subject
located in other states and/or subject to Michigan’s allocation to Michigan income tax in column E. If more space is needed
provisions. Gains or losses subject to Michigan’s to list assets, include additional sheets.
apportionment provisions, refer to the MI-1040H. Section 271. To apportion under Section 271, multiply the gain
• Periods before October 1, 1967 (Section 271 adjustment). If or loss in column D by the number of months the property was
you file U.S. Schedule D or Form 4797 and you elect to held after September 30, 1967. Divide the result by the total
adjust under Section 271 of the Michigan Income Tax Act, number of months held. Enter the result in column E. For
you must file the equivalent Michigan forms (MI-1040D or the purpose of this computation, the first month is excluded
MI-4797). You must include all items of gain or loss realized if acquisition took place after the 15th, and the last month is
during the tax year; or excluded if disposal took place on or before the 15th.
• Gains or losses from the sale or exchange of U.S. obligations Gains from installment sales made before October 1, 1967, must
that cannot be taxed by Michigan. show federal gain in column D and zero in column E. Gains
from installment sales made after October 1, 1967, are subject
General Information
to Michigan tax but may be apportioned under Section 271.
Michigan Form MI-8949 follows the U.S. Form 8949 and all the
Distributions from pension, stock bonus or profit-sharing trust
information needed to complete it should be taken from your
plans that are considered to be long-term capital gains (under
U.S. Form 8949.
Section 402 of the Internal Revenue Code) and capital gains
Form MI-8949 computations must be carried to Form MI-1040D. distributions are not eligible for Section 271 treatment.
Both forms (MI-8949 and MI-1040D) must be included with your
Form MI-1040. Sale of Property. Enter the total gain in the federal column.
Michigan business income (loss) includes the distributive share Enter in the Michigan column the gain or loss from the sale or
of income (loss) from a flow-through entity, including net short- exchange of:
term and long-term capital gain (loss). Michigan business income • Real property located in Michigan; or
subject to apportionment is to be reported on the MI-1040H or
• Tangible personal property located in Michigan at the time
included on Form MI-461 (if applicable), do not use this form to
of the sale or owned by a Michigan resident and not subject
apportion those gains or losses.
to tax in the state where the property is located; or
Rounding Dollar Amounts • Intangible personal property sold by a Michigan resident; or
Round all amounts to whole dollar amounts. Round down Gains and losses from business property reported and apportioned
amounts less than 50 cents. Round up amounts of 50 through to Michigan on Form MI-1040H should not be reported in the
99 cents. Do not enter cents.
Michigan column E.
Identification U.S. Obligations. Gains from the sale of some U.S. obligations
For individual income tax filers, enter the filer’s name and full are not subject to tax and losses are not deductible. Enter a zero
nine-digit Social Security number at the top of the form. For in the Michigan column for gains or losses realized from the
fiduciary filers, enter the name of the estate or trust and full sale of these non-taxable U.S. obligations.
Federal Employer Identification Number (FEIN).
Note: Any interest expense and other expenses incurred in the
Parts 1 and 2 production of income from U.S. obligations should be offset
against dividend and interest income from U.S. obligations on
Federal Information
the MI-1040 return. See the instructions for Schedule 1, line 10,
Complete columns A, B, C and D of the MI-8949 from in the MI-1040 instruction booklet.
corresponding columns a, b, c and h of your U.S. Form 8949.
If an election to defer tax on an eligible gain was made by Out-of-State Property. Gains from the sale of non business
investing in a Qualified Opportunity (QO) Fund, report the QO property located in another state are not subject to tax and
Fund information from U.S. Form 8949, columns a and b in losses are not deductible. Gains and losses from the sale of
MI-8949, columns A and B for each QO Fund reported. Enter business property located in another state are sourced based the
any amount of adjustment from U.S. Form 8949, column g in location of the business activity.
MI-8949, column D and zero in column E for each QO Fund Totals
reported.
Enter on line 2, the total from line 1 and any additional sheets
Line 2: The amount reported on MI-1040D, line 1, includes listing short-term capital gains and losses. Enter on line 4, the
this line and any amount reported on U.S. Schedule D, line 1a, total from line 3 and any additional sheets listing long-term
column h. capital gains and losses.
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