Mich. Admin. Code R. 206.7 – Add back of taxes on or measured by income. | Midpage
Rule 206.7
Mich. Admin. Code R. 206.7
Add back of taxes on or measured by income.
(By authority conferred on the department of treasury by sections 3 and 13 of 1941 PA 122, sections 9 and 83 of 1965 PA 380, and sections 471 and 520 of 1967 PA 281, MCL 205.3, 205.13, 16.109, 16.183, 206.471 and 206.520.)Customer Service Bureau
(1) Taxes on or measured by income deducted in computing federal adjusted gross income shall be added back to federal adjusted gross income to determine the income subject to Michigan income tax.
(2) An individual who receives distributive income from partnerships, joint ventures, and subchapter S corporations is required to make the adjustment in subrule (1) if the partnership, joint venture, or subchapter S corporation paid city or state income tax on its distributive income and did not add back such taxes to the amounts distributed to the partners or shareholders.