Mich. Admin. Code R. 206.8
Rule 8. Losses on the sale or exchange of United States obligations, the income of which the state is prohibited from taxing, shall be subtracted from federal adjusted gross income. To do this, file form MI-1040D and enter a zero in column "Z" of the line on which the loss is reported.
Mr. Smith is reporting a gain from the sale of stock in the amount of $2,100.00 and a loss from the sale of United States obligations in the amount of $900.00
Federal | |||
Michigan | Date | Date | Gain |
Gain Co. Z | Acquired | Sold | Col. Y |
6. Stock $2,100.00 | 9-30-68 | 10-1-77 | $2,100.00 |
U.S. Obligation | 4-1-69 | 7-10-77 | (900.00) |
- 0 - | |||
7. Capital gain distribution | |||
8. Enter gain if applicable from form MI-4797 line 4(a)(1) | |||
9. Enter your share of net ling-term gain or (loss) from partnerships and fiduciaries | |||
10. Enter your share of net long-term gain from small business corporations (subchapter S) | |||
11. Net gain or (loss) combine lines 6 through 19$2,100.00 | $1,200.00 | ||
12. Long-term capital loss carryover attributable to () years beginning after 1969 | () | ||
13. Net long term gain of (loss) combine lines 11 and 12 $2,100.00 | $1,200.00 | ||
14. Combine the amounts shown on line 5 and 13 and enter the net gain (loss) here $2,100.00 | $1,200.00 | ||
15. If line 14 shows a gain - | |||
(a) Enter 50% of line 13 or 50% of line 14, whichever is smaller. Enter zero if there is a loss or no entry on line 13 $1,050.00 | $600.00 | ||
(b) Subtract line 15(a) from line 14. Enter here and carry amount in column Y to MI-1040 line 39(a) carry amount in column Z to MI-1040 line 32(a) $1,050.00 | $600.00 | ||
Mich. Admin. Code R. 206.8