Non Resident Michigan K1

[Parent of Holy Terror]

Facts: Wisconsin Resident
Owner of 1120-s in Michigan

He files a non resident for Michigan.

My software Ultra tax does not pick up the interest and dividends from the K1 automatically and put it to the non resident Michigan NR.

The instructions were not clear so I went to the Michigan law and spoke with an auditor. The auditor and the law say MI will tax the interest.

How do other software programs handle this situation?

Am I wrong? Is there any way the interest would NOT be taxable to Michigan?

[Unregistered]

UltraTax data entry

To get the interest income to flow properly to the MI nonresident return you need to enter the interest income in the subschedule (not directly on the K-1 screen), enter a postal code of MI and enter 100% in the In-State Source % field. Same theory for dividend income.