2022 MI-1040D, Page 3
Instructions for Completing Form MI-1040D
When to File
income if you have capital gains or losses attributable to one
of the following:
• Gains or losses from the sale of certain types of
properties located in other states and/or subject to
Michigan’s allocation provisions. Gains or losses
subject to Michigan’s apportionment provisions, refer to
the MI-1040H.
• Periods before October 1, 1967 (Section 271
adjustment). If you file U.S. Form 1040 Schedule D or
Form 4797 and you elect to adjust under Section 271 of
the Michigan Income Tax Act, you must file the
equivalent Michigan forms (MI-1040D or MI-4797).
You must include all items of gain or loss realized
during the tax year; or
• Gains or losses from the sale or exchange of U.S.
obligations that cannot be taxed by Michigan.
General Information
Michigan Form MI-1040D follows the U.S. Schedule D
and
all the information necessary for completing
Form MI-1040D
Form MI-1040D computations must be carried to
Schedule 1 or Schedule NR as applicable. These forms
must be included with your Form MI-1040.
Nonresidents and part-year residents, that are allocating
capital gains or losses, see instructions for Schedule NR,
line 8.
Michigan business income (loss) includes the distributive
share of income (loss) from a ow-through entity, including
net short-term and long-term capital gain (loss). Michigan
business income subject to apportionment is to be reported
on the MI-1040H or included on Form MI-461 (if applicable),
do not use this form to apportion those gains or losses.
Rounding Dollar Amounts
Show money items as whole dollar amounts. Round down
amounts less than 50 cents. Round up amounts of 50
through 99 cents. Do not enter cents.
Identication
Be sure to enter your name(s) and Social Security
number(s) at the top of the form.
Parts 1 and 2
Federal Information
Line 1. The amount entered on this line includes a
combined total from both the MI-8949, line 2 and
U.S. Form 1040 Schedule D, line 1a, column h.
For lines 2, 3, 4, 7, 8, 9 and 10, column D, enter the
amounts from U.S. Form 1040 Schedule D, for the
corresponding line numbers listed below:
Corresponding lines on MI-1040D and
U.S. Schedule D
MI-1040D 2 3 4 7 8 9 10
U.S. Schedule D
4 5 6 11 12 13 14
Line 6. The amount entered on this line includes a
combined total from both the MI-8949, line 4 and
U.S. Form 1040 Schedule D, line 8a, column h.
Michigan Information
Enter the portion of federal gain and loss subject to
Michigan income tax on lines 2, 3, 4, 7, 8, 9 and 10,
column E.
Section 271 of the Michigan Income Tax Act
To apportion under Section 271, multiply the gain or 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.
Gains or losses from the sale of property before
October 1, 1967 that have a federal excess business loss
limitation must make the adjustment on this form.
Part 3
Follow the instructions on Form MI-1040D to exclude
portions of capital gains or losses that cannot be taxed by
Michigan.
NOTE: When figuring which negative number is smaller,
treat both numbers as if they were positive. Enter the
number on line 13 as a positive amount on Schedule 1.
Part 4
Part 4 is similar to the Capital Loss Carryover Worksheet
from the U.S. Schedule D instructions. Follow the
instructions on the MI-1040D. Enter federal figures in
column F and Michigan figures in column G.
Line 16: In column F enter the result of subtracting line 15
from line 14. In column G enter the result of subtracting
MI-1040, line 13 from MI-1040, line 12. If either amount
is a loss, enter as a negative.