Reset Form
Michigan Department of Treasury (Rev. 03-21), Page 1 of 2 
                                                                                                                                    Issued under authority of Public Act 281 of 1967, as amended. 
2021 MICHIGAN Adjustments of Gains and Losses                                                                                                          Type or print in blue or black ink. 
                                                                                                                                      Report all amounts in whole dollars.
From Sales of Business Property MI-4797 
Reported on U.S. Form 4797.  To be filed with Form MI-1040 or MI-1041, see instructions.                                                                       Attachment 16 
Filer’s Name Shown on Tax Return                                                                                                    Identifying Number 

PART 1: Sales or Exchanges of Property Used in Trade or Business and Involuntary Conversion 
From Other Than Casualty or Theft - Property Held More Than One Year. 

1.   Enter the gross proceeds from the sale or exchange of real estate reported to you as reported on U.S. Form 4797  
2.                  A                                      B                 C                                                      D                          E 
                                                          Date Acquired   Date Sold                                                 Federal Gain (Loss) from   Gain (Loss) from Column D 
              Description of Property                     (MM-DD-YYYY)    (MM-DD-YYYY)                                              Column g of U.S. Form 4797 Subject to Michigan Income Tax 

3.  Gain, if any, from U.S. Form 4684, line 39  ............................................................                   3. 
4.   Section 1231 gain from installment sales from U.S. Form6252, line 26 or 37.......                                         4. 
5.  Section 1231 gain or (loss) from like-kind exchanges from U.S. Form 8824  ........                                         5. 
6.  Gain, if any, from Part 3, line 26, from other than casualty or theft  .......................                             6. 
7.  Add lines 2 through 6 in columns D and E  ............................................................                     7. 
     • If line 7, column D or E, is zero or a loss, enter amount on line 11 below and skip lines 8 and 9. 
     • If line 7, column D or E, is a gain, and you had no section 1231 losses from prior years, enter 
       amount as a long-term capital gain on MI-1040D or MI-1041D and skip lines 8, 9, 11 and 12 below. 
8.   Non-recaptured net section 1231 losses from prior years (enter as a positive)                                             8. 
9.  Subtract line 8, column D from line 7, column D, and subtract line 8, 
     column E, from line 7, column E. If less than zero, enter “0”.................................                            9. 
     • If line 9 is zero, carry amount(s) from line 7 to line 12. 
     • If line 9 is greater than zero, enter amount from line 8 on line 12 below, and enter 
       amount from line 9 as a long-term capital gain on MI-1040D, line 7 or MI-1041D, line 10. 

PART 2:  Ordinary Gains and Losses
10.  Ordinary gains and losses not included on lines 11 through 17 (include property held one year or less). 

11.  Loss, if any, from line 7, column D or E .................................................................                11. 
12.  Gain, if any, from line 7, column D or E, or amount from line 8 .............................                             12. 
13.  Gain, if any, from Part 3, line 25  ............................................................................  13. 
14.  Net gain or (loss) from U.S. Form 4684, lines 31 and 38a ....................................                             14. 
15.  Ordinary gain from installment sales from U.S. Form 6252, lines 25 or 36  ...........  15. 
16.  Ordinary gain or (loss) from like-kind exchanges from U.S. Form 8824................  16. 
17.  Add lines 10 through 16 in columns D and E. For fiduciary filers, enter the gain 
     or (loss) on the fiduciary return (see instructions)  ..................................................  17. 
18.  For individual returns, complete lines a and b below. 
18a. If the loss on line 11 includes a loss from U.S. Form 4684, line 35, column (b)(ii), 
     enter that part of the loss here................................................................................ 18a. 
18b.  Redetermine the gain or (loss) on line 17, excluding the loss (if any) on line 18a. 
     Enter here............................................................................................................... 18b. 
       NOTE:  If the federal amount is a gain, enter on Schedule 1, line 12. If a loss, enter as a positive on Schedule 1, line 5. If the Michigan amount is 
       a gain, enter on Schedule 1, line 3. If a loss, enter on Schedule 1, line 21. If nonresident or part-year resident, carry amount on 18b to Schedule 
       NR, line 8 (see Schedule NR instructions). 

                                                                  Continue on page 2. This form cannot be processed if page 2 is not completed and included. 

+ 0000 2021 69 01 27 2 

2021 MI-4797, Page 2 of 2 
                                                                                      Identifying Number 

PART 3: Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254 and 1255 
                                                                                                                                Percentage of Gain Subject to 
                                                                                                                                Michigan Income Tax (divide number 
19. Description of Sections 1245, 1250, 1252, 1254 and                                Date Acquired                Date Sold    of months after 10-01-1967 by total 
    1255 property                                                                     (MM-DD-YYYY)                 (MM-DD-YYYY)     number of months) 

(A) 
(B) 
(C) 
(D) 

                                                                                      Property           Property  Property     Property 
Relate lines 19(A) through 19(D) to these columns:                                    (A)                      (B) (C)          (D)      TOTAL 

20.  Enter amounts from U.S. Form 4797, line 24  .................................. 
21.  Enter portion of gain subject to Michigan tax. 
    (Multiply gain on line 20 by percentage computed on line 19.)  ........ 
22.  Enter from U.S. Form 4797 the total of lines 25(b), 26(g), 27(c), 
    28(b) and 29(b) in columns A through D .......................................... 
23.  Enter portion of gain subject to Michigan tax. 
    (Multiply gain on line 22 by percentage computed on line 19.)  ........ 

                                                                                                                   F                     G 
                                                                                                                   Federal               Michigan 

24. Enter in column F the total from line 20; enter in column G the total from line 21. ........... 
25.  Enter in column F the total from line 22 and carry to line 13, column D. 
    Enter in column G the total from line 23 and carry to line 13, column E........................... 
26. Subtract line 25 from line 24. Enter portion in columns F and G from other 
    than casualty or theft on Part 1, line 6, columns D and E................................................. 

+ 0000 2021 69 02 27 0 

2021 Form MI-4797, Page 3 

     Instructions for Form MI-4797 MICHIGAN Adjustments of Gains and Losses 
                                 From Sales of Business Property MI-4797 

General Information                                                    Line 6: Enter in column D the gain from column F, line 26. Enter    
Only use this form to adjust your Michigan taxable income              in column E the gain from column G, line 26. 
if you have capital gains or losses attributable to one of the         Line 10:  Enter other ordinary gains and losses from your      
following:                                                             U.S. Form 4797. Enter federal gain or loss in column D. Enter  
  •  Gains or losses from the sale of certain types of properties      portion of gain or loss subject to Michigan income tax in    
   located in other states and/or subject to Michigan’s allocation     column E. 
   provisions. Gains or losses subject to Michigan’s                   Line 13: Enter in column D the amount from line 25, column F.  
   apportionment provisions, refer to the MI-1040H.                    Enter in column E the amount from line 25, column G. 
  •  Periods before October 1, 1967 (Section 271 adjustment).  If      Line 14: Enter gain or loss from U.S. Form   4684, lines 31 and 
   you file U.S. Schedule D or Form 4797 and you elect to adjust       38a. If the gain or loss was from more than one casualty or theft,  
   under Section 271 of the Michigan Income Tax Act, you must          include a copy of U.S. Form 4684  and a schedule showing the  
   file the equivalent Michigan forms (MI-1040D or MI-4797).           computation of gain or loss subject to Michigan income tax. 
   You must include all items of gain or loss realized during the      Line 17: Enter a federal gain on MI-1041, Schedule 1, line 38.  
   tax year.                                                           Enter a federal loss as a positive number on MI-1041, Schedule 1,    
Michigan business income (loss) includes the distributive share        line 33. Enter a Michigan gain on MI-1041, Schedule 1, line 33.  
of income (loss) from a flow-through entity, including net short-      Enter  a Michigan loss as a positive number on MI-1041, Schedule 1,    
term and long-term capital gain (loss). Michigan business income       line  38.  If  the  filer  is  a  nonresident  estate  or  trust,  carry  the  
subject to apportionment is to be reported on the MI-1040H or          Michigan portion to MI-1041, Schedule NR, line 7, column B. 
included on Form MI-461 (if applicable), do not use this form to       Line 20:   Enter  the  total  gain  for  each  property  from  U.S.   
apportion those gains or losses.                                       Form 4797, line 24 and enter the total gain for all properties in the  
Nonresidents and part-year residents, that are allocating capital      total column. 
gains or losses, see instructions for Schedule NR, line 8.             Include your MI-4797 with your MI-1040 or MI-1041. Also  
Section 271. To apportion under Section 271, multiply the gain or      include a copy of your U.S. Form 4797 with your return. 
loss in column D by the number of months the property was held  
after September 30, 1967. Divide the result by the total number of  
months held. Enter the result in column E. For the purpose of this  
computation, the first month is excluded if acquisition took place  
after the 15th, and the last month is excluded if disposal took place  
on or before the 15th. Gains from installment sales made before  
October 1, 1967, must show federal gain in column D and zero  
in column E. Gains from installment sales made after October 1,  
1967, are subject to Michigan tax but may be apportioned under  
Section 271. 
Identification:  For individual income tax filers, enter the filer’s  
name and full nine-digit Social Security number at the top of the  
form. For fiduciary filers, enter the name of the estate or trust and  
full Federal Employer Identification Number (FEIN).   
Line-by-Line Instructions 
Lines not listed are explained on the form. 
Line   2:  Enter  in  columns A,  B,  C,  and  D  the  corresponding  
information from your U.S. Form 4797. For column E, enter the  
gain or loss subject to Michigan income tax. 
Line 3:    Enter in column D any gain from U.S. Form  4684, line 
39. In column E enter the gain subject to Michigan income tax.  
If the gain was realized from more than one casualty or theft and  
some or all of the property was acquired prior to October 1, 1967,  
include a copy of U.S. Form  4684  and a schedule showing the  
computation of gain subject to Michigan income tax.