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Column 2, Line 2. If you reported dividend income, enter on this line the amount Line 2. Enter on this line the net capital loss carryover applicable to Muskegon.
of the dividend-received deduction allowed by the federal Internal Revenue Code Net capital losses sustained by a corporation for periods subsequent to July 1,
for dividends received. 1993 may be carried forward in the same manner as under the federal Internal
Revenue Code. No deduction will be allowed for capital losses sustained prior
Column 2, Line 3 and Line 4. Taxpayers may deduct income war profits and to July 1, 1993. If all business was not conducted in Muskegon in the year in
excess profits taxes imposed by foreign countries or possessions of the United which the loss was sustained, use the business allocation percentage formula
States, allocable to income included in taxable net income, any part of which to arrive at the deductible portion of the loss. Attach a schedule showing your
would be allowable as a deduction in determining federal taxable income under computation for the amount reported on this line.
the applicable provisions of the federal Internal Revenue Code.
Line 3. Corporations who are partners in a business activity taxed as a
If a foreign tax credit, rather than a foreign tax deduction, was claimed on your partnership that has business activity in Muskegon must enter on this line their
federal return, enter on line 3 the portion of the foreign tax credit which was portion of the Muskegon taxable income or loss from the partnership(s). Attach
grossed up and included in your Muskegon return as dividends received. a schedule showing your computation for the amount reported on this line
Enter on Line 4 the “foreign taxes paid or accrued” portion of the foreign tax including the name and taxpayer identification number of the partnership(s).
credit claimed on your federal return, not in excess of the federal limitations
thereon. The balance of your foreign tax credit is not deductible. INFORMATION AND PREPARER AUTHORIZATION
Column 2, Line 5. Enter on Line 5 the nontaxable portion of a gain from the Third Party Designee. If the “yes” box is marked, the corporation is authorizing
sale or exchange of property acquired prior to July 1, 1993. The portion of the the Muskegon Income Tax Department to call the preparer to answer any
gain occurring prior to the inception of the Ordinance is not recognized. Refer questions that may arise during the processing of its return. The corporation is
to the instructions for Schedule C, Column 1, Line 1 for computation instructions. also authorizing the preparer: to give the Department any information that is
missing from the return; to call the Department for information about the
Capital gains from U.S. Government obligations included in income reported processing of the return or the status of any related refund or payments; and to
on Page 1, Line 1 are not taxable. Remove these gains by including them in the respond to certain notices that the corporation has shared with the preparer
amount reported on Line 5. about math errors, offsets and return preparation.
Column 2, Line 6. Enter income from entities filing as partnerships that are
included in taxable income reported on Page 1, Line 1. DECLARATION AND PAYMENT OF ESTIMATED TAX
1.WHO MUST FILE: Every corporation subject to the tax on all or part of its
SCHEDULE D net profits must file a Declaration of Estimated Income Tax (Form M-1040ES).
The business allocation percentage formula must be used by corporations with A Declaration is not required from corporations if the estimated tax is two
business activity both within and outside the City of Muskegon who have not hundred fifty dollars ($250.00) or less.
been approved to use the separate accounting method. If a corporation has a 2.WHEN AND WHERE TO FILE AND PAY:
property and payroll percentage that is 100% Muskegon, you do not have a A. Declaration for Calendar Year. The Declaration for a calendar year must
business activity outside the City of Muskegon and may not allocate sales. Enter be filed on or before April 30th of that year. The estimated tax is payable
100% on Schedule D, Line 5. in equal installments on or before April 30th, June 30th, September
30th and January 31st.
Line 1. Enter in Column 1 the average net book value of all real and tangible B. Declaration for Fiscal Year: the Declaration for a year, or period differing
personal property owned by the business, regardless of location, and in column from the calendar year must be filed within four (4) months after the
2 show the net book value of the real and tangible personal property owned beginning of each fiscal year or period. For example, if a fiscal year
and located or used in the City of Muskegon. The average net book value of begins on April 1st, the Declaration will be due on July 31st. Remaining
real and tangible personal property may be determined by adding the net book installments will then be due on the last day of the 6th, 9th and 13th
values at the end of the year and dividing the sum thus obtained by two. months after the beginning of the fiscal year.
Line 1a. Enter in Column 1 the gross annual rent multiplied by 8 for all rented C. Filing and Payment: The Declaration should be filed with the Muskegon
real property regardless of location. In Column 2 show the gross annual rent City Income Tax Department, P.O. Box 29, Muskegon, MI 49443-0029.
multiplied by 8 for rented real property located in the City of Muskegon. Gross The first installment payment must accompany the Declaration. The
annual rent refers to real property only, rented or leased during the taxable estimated tax may be paid in full with the Declaration.
period, and should include the actual sums of money or other consideration
paid, directly or indirectly, by the taxpayer for the use or possession of such ASSISTANCE
property. If you have questions, would like to request forms, or need assistance in preparing
your return call (231) 724-6770. Questions by mail should be directed to Muskegon
Line 2. Enter in Column 1 the total compensation paid to all employees during City Income Tax Department, P.O. Box 29, Muskegon, MI 49443-0029.
the year, and in Column 2 show the amount of compensation paid to employees
for work or services performed within the City of Muskegon during the year. WEBSITE
Line 3. Enter in Column 1 the total gross revenue from all sales or services renderedIncome tax forms, instructions and additional information are available under
during the year, and in column 2 show the amount of revenue derived from sales the Income Tax Department section of the City of Muskegon website,
made or services rendered in the City of Muskegon during the year. If there is no www.shorelinecity.com/incometax.asp.
regularly maintained sales force outside of the city, this allocation factor must be
100% for businesses with no other business activity outside the city. NOTICE
These instructions are interpretations of the Muskegon Income Tax Ordinance.
Separate Accounting - The taxpayer may petition for, or the administrator may The Ordinance will prevail in any disagreement between the instructions and
require, use of the separate accounting method. If such method is petitioned, the Ordinance.
the administrator may require a detailed statement to determine whether the
net profits attributable to the city will be apportioned with reasonable accuracy.
Generally, a corporation that is unitary in nature (i.e., has central management,
purchasing, warehousing, advertising, etc.) cannot use separate accounting,
Taxpayers allocating on any basis other than separate accounting shall include
all interest, dividends and other non-operating income to arrive at the total
income subject to the allocation percentage.
Taxpayers using separate accounting shall include in income subject to tax a
proportionate share of dividends, interest and other non-operating income of
the total corporation. This type of income is apportioned to Muskegon activity
on the same basis as general administrative and overhead costs are apportioned.
SCHEDULE G
Line 1. Net operating losses carried forward are to be reported on this line.
There is no provision for carrying back losses to prior tax years. Carryover losses
are to be allocated to Muskegon at the percentage of business conducted in
Muskegon in the year in which the loss was sustained. If all business was not
conducted in Muskegon in the year in which the loss was sustained, use the
business allocation percentage formula to arrive at the deductible portion of
the loss. Attach a schedule showing your computation for the amount reported
on this line.
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