Michigan Preparers

[JoshinNC]

Working on a 1065 (LLC) for a client that was set up in Michigan for the sole purpose of buying a residential property out of foreclosure to immediately sell it on an installment basis. The interest received on the installment in 2011 was $2359 and the total gain on the sale to be recovered over the entire sale term is only $760 so a negligible amount in 2011.

My software says that the MI income is below the MBT filing requirement. Can anyone familiar with this point me in the right direction? Does this mean there is no MI filing for 2011?

Thanks in advance!

[Hamacher]

Correct

That is correct... there is no MI filing requirement.

[JoshinNC]

Thanks Hamacher

Second question, since there is no MI Partnership return do the partners (NC residents) just treat the income as NC income for allocation purposes or still file an MI non-resident return?

[Hamacher]

Need to file MI-1040

Second question, since there is no MI Partnership return do the partners (NC residents) just treat the income as NC income for allocation purposes or still file an MI non-resident return?

They will need to file a nonresident Form MI-1040.

[JoshinNC]

Thank you so much

They will need to file a nonresident Form MI-1040.

Appreciate it!