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                                                                         2019
                                                                     LANSING
                                         ESTATE OR TRUST INCOME TAX FORMS 
                                                          AND INSTRUCTIONS 

                                                                     Form L-1041

Andy Schor, Mayor
Judy Kehler, City                                         For use by estates and trusts
Treasurer & Income Tax 
Administrator

ESTATES AND TRUSTS HAVING LANSING TAXABLE INCOME IN A TAX YEAR MUST FILE A RETURN 
ESTATES AND TRUSTS ARE TREATED LIKE A NONRESIDENT TAXPAYER AND TAXED AT THE NONRESIDENT TAX RATE 

MAILING           Mail estate or trust returns, Form L-1041, to: City of Lansing, Income Tax Department, 124 W Michigan Ave, 1st 
ADDRESS           Floor, Lansing, MI 48933.

TAX RATES         The nonresident tax rate is 0.5% (0.005)
   AND            An estate or trust is allowed one exemption; the exemption is currently $600. 
EXEMPTIONS 

                  Tax due, if one dollar ($1.00) or more must be paid with your return. Make check or money order payable to:         CITY OF 
PAYMENT           LANSING CITY. Mail tax due return and payment to:      City of Lansing, Income Tax        Department, 124 W Michigan 
OF TAX DUE        Avenue ,1st Floor, Lansing, MI 48933. 
                  Note: Estates and trusts are not required to make estimated income tax payments for 2020.

                  Only paper filed estate or trust returns are accepted. Mail estate or trust return, Form L-1041, to: 
FILING            City of Lansing, Income Tax Department, 124 W Michigan Ave, 1st Floor, Lansing, MI 48933.  
OF RETURN         201 9calendar year tax returns are due April 30, 2020; fiscal year tax returns are due on the last day of the fourth 
                  month after the end of the tax year. 
                  For assistance: find us online at www.lansingmi.gov; call (517) 483-4114; or visit the Lansing Income Tax Department at
CONTACT US        City Hall, 124 W Michigan Ave, 1st Floor, Lansing, MI 48933. Mail tax correspondence to: Lansing Income Tax, 124 W
                  Michigan Ave, 1st Floor, Lansing, MI 48933.

                  Failure to attach documentation or attaching incorrect or incomplete documentation 
                   will delay processing of the return or result in corrections being made to the return.

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INSTRUCTIONS FOR FORM L-1041
Estates and trusts with Lansing taxable income who are required (loss) is from sales of property located in Lansing. A capital gain or
to file a U.S. Income Tax Return for Estates and Trusts, Form (loss) flowing through from an S corporation is totally excluded
1041, must file Lansing Income Tax Return for Estates and Trusts, from income.
Form L-1041. A business trust that files as a corporation with the
Internal Revenue Service and is “doing business” in Lansing must A capital loss from property located in Lansing is allowed to the
file a Lansing corporation income tax return. same extent allowed under the Internal Revenue Code. An unused
capital loss may be carried over to future tax years. The capital
loss carryover for the city may be different from the carryover for
federal income tax purposes. An adjustment must be made for this
TAXABLE INCOME difference.
The taxable income of an estate or trust is the same as the taxable
income of a nonresident individual. Income distributable to a A deferred capital gain from an installment sale or like-kind
person other than an individual resident of Lansing and income not exchange of property located in Lansing is taxable in the year
distributed from the following sources is subject to tax: recognized for federal income tax purposes.
1. Net profit or (loss) from the operation of a business or
farm that is attributable to business activity conducted in The portion of capital gain or (loss) from property purchased prior
Lansing whether or not such business is located in to January 1, 1968, is excluded from income. The gain or (loss) on
Lansing; property purchased prior to January 1, 1968 must be determined
2. Net profit from rental of real and tangible personal by one of the following methods:
property located in Lansing; 1. The basis may be the adjusted fair market value of the
3. Gain on the sale or exchange of real and tangible property on 12/31/1967 (the 12/31/1967 closing price for
personal property located in Lansing; traded securities) , or
4. Income from a partnership, estate or trust taxable under 2. Divide the number of months the property was held since
the Lansing Income Tax Ordinance; and January 1, 1968, by the total number of months the
5. Other income earned in or from other activity in Lansing. property was held, and apply this fraction to the total gain or
(loss) of each separate property as reported on federal form
1041.
Form L-1041 Report on page 1, line 2, column A, the capital gain or (loss)
The flow of income on Form L-1041 starts in Column A with reported on federal Form 1041, line 4. Use Schedule 2, Exclusions
income reported on the federal return; column B is used to adjust and Adjustments to Capital Gain or (Loss), to calculate the
the federal data for income taxable on the federal return that is not excluded capital gain or (loss). On line 2, column B, enter the total
taxable by Lansing and vise versa; and column C reports the excluded capital gain or (loss) from Schedule 2, line 4.
income taxable under the Lansing Income Tax Ordinance (column If reporting capital gain or (loss), attach a copy of federal Schedule
A less column B). D (Form 1041) to the return. If excluding or adjusting reported
Exclusions and adjustments reported in column B must be capital gain or (loss), attach a copy of Schedule 2 to the return.
explained by completing and attaching applicable exclusion or
adjustment schedules or by attaching a separate explanation to the Line 3 – Rental Real Estate, Royalties, Partnerships, Other
return. Attach copies of federal schedules to support all entries on Estates, Trusts, Etc.
lines 1, 2, 3, 4 and 5 of Column A. Except for S corporation income or (loss), all income reported on
the federal Schedule E that comes from business activity in
After the determination of Lansing income, a qualified estate or Lansing or property located in Lansing is income in Lansing. Flow
trust with business activity in a Renaissance Zone is allowed a through Income from an S-corporation is totally excludible. A flow
Renaissance Zone deduction. A deduction is allowed for the through loss from an S corporation must be entered as a negative
portion of Lansing income distributed to a resident of Lansing. adjustment and added back to income.
Deductions claimed must be supported by the filing of Schedule G The following income reported on federal Schedule E is
(page 2 of Form L-1041) and/or Schedule RZ, Renaissance Zone excludable: income from business activity outside of Lansing;
deduction. income from property located outside of Lansing; and income from
other estates and trusts.
Report on page 1, line 3, column A, the income or (loss) from
PAGE 1 INSTRUCTIONS rents, royalties, partnerships, other estates and trusts reported on
Line 1 – Business Income or (Loss) federal Form 1041, line 5. Use Schedule 3, Exclusions and
Net profit or (loss) from the operation of a business or profession is Adjustments to Rents, Royalties, Partnerships, Other Estates and
income to the extent it results from work done, services rendered Trusts, to calculate excluded income or (loss). On line 3, column B,
or other business activities conducted in Lansing. enter the total excluded income or (loss) from Schedule 3, line 6.
Report on page 1, line 1, column A, the business income reported If reporting income or (loss) from rents, royalties, partnerships,
on federal Form 1041, line 3. Use Schedule 1, Exclusions and other estates and trusts, attach a copy of Federal Schedule E
Adjustments to Business Income or (Loss), to calculate excluded (Form 1040) to the return. If excluding or adjusting income or (loss)
business income. The total excluded business income from from rents, royalties, partnerships, S corporations, other estates
Schedule 1, line 5, is entered on page 1, line 1, column B. If a and trusts, Schedule 3 must be attached to the return.
business operates both in and outside of the city, the taxable profit
or (loss) is determined using the three factor Business Allocation Line 4 – Farm Income or (Loss)
formula. Profit or (loss) from a farm is included in income to the extent the
profit or (loss) results from work done, services rendered or other
Where no work is done, services rendered or other business activities conducted in Lansing. The portion of the profit or (loss)
activity is conducted in Lansing, the profit or (loss) is entirely reported on the Lansing return is determined by use of the three
excluded. factor Farm Allocation Percentage formula. Where no work is
done, services rendered or other business activity is conducted in
If reporting business income, attach a copy of Federal Schedule C Lansing, the entire farm profit or (loss) is excluded.
to the return. If excluding or adjusting business income or (loss),
Schedule 1 must be attached to the return. Sales of crops at the produce market, any of the farmer’s markets
or a produce stand located in Lansing is Lansing business activity
Line 2 – Capital Gain or (Loss) and subjects the farm to Lansing income tax.
Except for a capital gain flowing through from an S corporation, a
capital gain or (loss) is included in income to the extent the gain or
Revised 01/17/2020
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INSTRUCTIONS FOR FORM L-1041
Report on page 1, line 4, column A, the income or (loss) from a Line 13 – Lansing Tax Withheld
farm reported on federal Form 1041, line 6. Use Schedule 4, Enter total Lansing income tax withheld on line 13. Attach a copy
Exclusions and Adjustments to Farm Income or (Loss), to calculate of all documents showing the reported tax withheld.
excluded income or (loss). On line 4, column B, enter the total
excluded farm profit or (loss) from Schedule 3, line 4. Line 14 – Estimated Income Tax, Credit Forward and
Extension Payments
If reporting farm income or (loss), attach a copy of federal Total the estimated income tax payments, any credit forward from
Schedule F (Form 1040) to the return. If excluding or adjusting the previous tax year and any extension payment. Enter the total of
reported farm income or (loss), attach a copy of Schedule 4 to the these payments or credits on line 14.
return.
Line 15 – Total Payments
Line 5 – Ordinary Gain or (Loss) Enter the total of lines 13 and 14 on line 15.
Except for an ordinary gain or (loss) flowing through from an S
corporation, an ordinary gain or (loss) is included in income to the Line 16 – Tax Due
extent the gain or (loss) is from the sale of property located in If tax (line 12) is greater than the total payments (line 15), enter the
Lansing. An ordinary gain flowing through from an S corporation is difference (line 12 less line 15) on line 17, otherwise leave blank.
total excluded. A loss flowing through from an S corporation must The tax due must be paid with the return when filed. The due date
be entered as a negative and added back to income. for the return is the last day of the fourth month after the close of
the tax year. If the due date falls on a Saturday, Sunday or
Deferred ordinary gain or (loss) from installment sales and like-kind Holiday, the due date becomes the next business day.
exchanges of property that is in Lansing are taxable in the year
recognized for federal income tax purposes. Pay by Check or Money Order: Make the check or money order
payable to LANSING CITY TREASURER, and mail with the return
Report on page 1, line 5, column A, the ordinary gain or (loss) to the Lansing Income Tax, 124 W Michigan Ave, 1st Floor,
reported on federal Form 1041, line 7. Use Schedule 5, Exclusions Lansing, Michigan 48933. Do not send cash as your tax payment.
and Adjustments to Ordinary Gain or (Loss), to compute and report
exclusions and adjustments to ordinary gain and (loss) reported on Line 17 – Overpayment
the federal income tax return. On line 3, column B, enter the total If total payments (line 15) are greater than the tax (line 12), enter
excluded other gains or (losses) from Schedule 5, line 4. the overpayment, the difference of line 15 less line 12. If total
payments (line 15) is equal to the tax (line 12), enter a zero (0) on
Ordinary gain or (loss) from property purchased prior to January 1, line 17. Otherwise leave blank.
1968 is treated in the same manner as a capital gain or (loss) from
property purchased prior to January 1, 1968. See Line 2 Line 18 – Donation of Overpayment
instructions above for more information. All or a portion of the overpayment, may be donated to the city. To
make a donation, enter the amount of the donation in the box for
If reporting ordinary gain or (loss), attach a copy of federal Form the specific donation; Police Problem Solving (18a), the Hope
4797 to the return. If excluding or adjusting reported ordinary gain Scholarship (18b) and/or Homeless Assistance (18c). Enter the
or (loss), attach a copy of Schedule 5 to the return. total of the donations on line 18d.
Line 6 – Other Income Line 19 – Credit Forward to Next Tax Year
Other income is included in income to the extent it was earned in Enter the portion of the overpayment to be credited as a payment
Lansing. against next year’s tax liability on line 19.
Report on page 1, line 6, column A, the other income reported on Lines 20 and 21 – Refund
federal Form 1041, line 8. Use Schedule 6, Exclusions and Enter the portion of the overpayment to be refunded on line 20.
Adjustments to Other Income, to compute and report exclusions
and adjustments to other income reported on the federal income Refund by Direct Deposit: To have the refund directly deposited
tax return. List each item of other income excluded or adjusted. to the estate or trust’s bank account, on line 21a, mark (X) the box
Attach a separate schedule if necessary. “Refund (direct deposit)” and enter the bank routing number on line
21c; the bank account number on line 21d; and the account type
If excluding or adjusting reported ordinary gain or (loss), attach a on line 21e.
copy of Schedule 5 to the return.
Refund by Check: To receive a paper refund check, leave lines
Line 7 – Total income 21a through 21e blank.
Add lines 1 through 6 of each column and enter the totals in
column A, column B and column C.
INSTRUCTIONS FOR SCHEDULES
Line 8 – Renaissance Zone Deduction
Complete and attach Schedule RZ of L-1041. Schedules 1 through 6
Schedules 1 through 6 are for calculating and documenting the
Line 9 – Deductible Resident Beneficiaries Share of Income exclusions and adjustments to income reported in column A of the
Less Share of Renaissance Zone Deduction related line on the return. Follow the instructions on the schedule
Enter total from Schedule G (page 2 of Form L-1041), line 11, after or the instructions included under the related line instructions. (The
completing Schedule G. See Instructions for Schedules for more schedule number (1 - 6) relates to line numbers 1 through 6.)
detail.
Schedule G – Resident Beneficiary’s Share of Distributable
Line 10 – Exemption Income and Share of the Renaissance Zone Deduction (Page 2
The exemption is $600. of Form L-1041)
On lines 1 through 10 enter each resident beneficiary’s name,
Line 11 – Lansing Taxable Income address, social security number, their share of distributable income
Enter the Lansing taxable income, line 7 less lines 8, 9 and 10. included in Lansing income (see paragraph below) and their share
Line 12a – Tax Rate of the Renaissance Zone deduction (line 8). Subtract the
Enter nonresident the tax rate of 0.5% (0.005). Renaissance Zone deduction from the distributable income and
enter the difference in the deduction column. Add the amounts in
Line 12b – Tax the deduction column, lines 1 through 10, and enter the total on
Enter the tax due, line 11 multiplied by line 12a. line 11 and on page 1, line 9.
A resident beneficiary’s share of distributable income included in
line 7 is computed as follows:

Revised 01/17/2020
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INSTRUCTIONS FOR FORM L-1041
1. Divide the reported Lansing income on line 7 by the total line 5b. The amount on line 5b must be adjusted for any
income from federal Form 1041, line 9; related net operating loss deduction claimed on Form L-
2. Multiply the result of step 1 by the income distribution 1041, line 6.
deduction from federal Form 1041, line 18; and
3. Divide the result in step 2 in the same manner as the Attach list if more than one partnership is included in
federal distributable income is divided between amount reported on this line.
beneficiaries. Line 6. Enter the address and Renaissance Zone number for
The resident beneficiary’s share of the Renaissance Zone each parcel of rental real estate located in a Renaissance
deduction is computed in the same manner that the related income Zone. Attach list if more room is needed to report the
is divided between beneficiaries. address and zone number of each parcel of rental real
estate in a Lansing Renaissance Zone.
Schedule RZ – Renaissance Zone Deduction Line 7. Enter the income from rental real estate located in a
A Renaissance Zone deduction may be claimed by a qualified
estate or trust with income from: a proprietorship or as a partner in Lansing Renaissance Zone less any net operating loss
a partnership with business activity within a Renaissance Zone; deduction claimed.
rental real estate located in a Renaissance Zone; or an estate or Line 8. Enter the Renaissance Zone deduction base, the sum of
trust that qualifies for the deduction. A taxpayer, including an lines 4, 5b and 7.
estate or trust, is not qualified to claim the Renaissance Zone
deduction if the taxpayer is delinquent for any Michigan or Lansing Line 9a. Enter the deduction allowance factor, 100%, 75%, 50% or
taxes. A Lansing Income Tax Return for Estates and Trusts must 25%.
be filed to qualify and claim the Renaissance Zone deduction.
Schedule RZ of L-1041 must be attached to the return to claim Line 9b. Enter the Renaissance Zone deduction. Compute the
the Renaissance Zone deduction. deduction by multiplying the amount on line 8 by the
Renaissance Zone allowance factor. Also enter on L-
Line 1. List the business name, DBA, Renaissance Zone number 1041, line 8.
and address of each location within a Renaissance Zone.
Schedule N – Supporting Notes and Statements
Line 2a. Enter the business and farm income reported on L-1041, Use Schedule N to support data reported on the return. This data
column C of lines 1 and 4, from business activity in a includes calculations, statements, comments or notes.
Renaissance Zone.
Line 2b. Enter the net operating loss deduction claimed on L-1041,
line 6, related to the income reported on line 2a. RESIDENT BENEFICIARIES
A Lansing resident beneficiary must report their distributable
Line 2c. Base income for Renaissance Zone Deduction, line 2a income from an estate or trust on their Lansing income tax return,
less line 2b. Form L-1040, in the same manner and same amounts they report
the income on their federal income tax return, Form 1040.
Line 3. The Renaissance Zone apportionment percentage is
used by companies doing business in Lansing both inside
and outside a Renaissance Zone. If the business income
is 100% within the Renaissance Zone, enter 100% on line ASSISTANCE
3f and complete the form from there. If you need forms or assistance, call (517) 483-4114. Questions by
mail should be directed to: Lansing Income Tax Department,
Line 3a. In column 1 enter the average net book value of all real 124 W Michigan Ave, 1st Floor, Lansing, Michigan 48933.
and tangible personal property owned and located in Income tax forms and instructions are available on the
Lansing. In Column 2 enter the average net book value of Lansing website at www.lansingmi.gov.
the real and tangible personal property owned and
located in a Lansing Renaissance Zone. The average net
book value of real and tangible personal property may be NOTICE
determined by adding the net book value at the beginning
of the year to the net book value at the end of the year These instructions are interpretations of the Lansing Income Tax
and dividing the sum by two, or if the business was Ordinance. The Ordinance will prevail in any disagreement
located in the Renaissance Zone for less than a year, on between forms or instructions and the Ordinance.
a monthly average basis.
Line 3b. Enter in column 1 the gross annual rent multiplied by 8 for
all rented real property located in Lansing. In column 2
show the gross annual rent multiplied by 8 for rented real
property located in a Lansing Renaissance Zone.
Line 3c. Total column 1 and column 2. In column 3 enter the
percentage, column 2 divided by column 1.
Line 3d. Enter in column 1 compensation paid to employees for
work or services performed within Lansing. In column 2
enter compensation paid to employees for work or
services performed within a Lansing Renaissance Zone.
In column 3 enter the percentage, column 2 divided by
column 1.
Line 3e. Add column 3, line 3c and 3d.
Line 3f. Divide line 3e by 2.
Line 4. Renaissance Zone Deduction for business, line 2c
multiplied by line 3f.
Line 5. Enter partnership’s FEIN in line 5a and enter the partner’s
share of the partnership’s Renaissance Zone deduction in
Revised 01/17/2020
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