Michigan Michigan Adjustments of Gains and Losses From Sales of Business Property

Michigan Adjustments of Gains and Losses From Sales of Business Property
2023 Michigan Adjustments of Gains and Losses From Sales of Business Property MI-4797
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Michigan Department of Treasury (Rev. 04-23), Page 1 of 2

2023 MICHIGAN Adjustments of Gains and Losses
From Sales of Business Property MI-4797

Issued under authority of Public Act 281 of 1967, as amended.

Type or print in blue or black ink.
Report all amounts in whole dollars.
Attachment 16

Reported on U.S. Form 4797. To be filed with Form MI-1040 or MI-1041, see instructions.
Filer’s Name Shown on Tax Return

Identifying Number

PART 1: Sales or Exchanges of Property Used in Trade or Business and Involuntary Conversion
From Other Than Casualty or Theft - Property Held More Than One Year.
1. Enter the gross proceeds from the sale or exchange of real estate reported to you as reported on U.S. Form 4797
2.

A
Description of Property

3.
4.
5.
6.
7.

8.
9.

B

C

D

E

Date Acquired
(MM-DD-YYYY)

Date Sold
(MM-DD-YYYY)

Federal Gain (Loss) from
Column g of U.S. Form 4797

Gain (Loss) from Column D
Subject to Michigan Income Tax

Gain, if any, from U.S. Form 4684, line 39 ............................................................
3.
Section 1231 gain from installment sales from U.S. Form 6252, line 26 or 37.......
4.
Section 1231 gain or (loss) from like-kind exchanges from U.S. Form 8824 ........
5.
Gain, if any, from Part 3, line 26, from other than casualty or theft .......................
6.
Add lines 2 through 6 in columns D and E ............................................................
7.
If line 7, column D or E, is zero or a loss, enter amount on line 11 below and skip lines 8 and 9.

•
•

If line 7, column D or E, is a gain, and you had no section 1231 losses from prior years, enter
amount as a long-term capital gain on MI-1040D or MI-1041D and skip lines 8, 9, 11 and 12 below.
Non-recaptured net section 1231 losses from prior years (enter as a positive)
8.
Subtract line 8, column D from line 7, column D, and subtract line 8,
column E, from line 7, column E. If less than zero, enter “0”.................................
If line 9 is zero, carry amount(s) from line 7 to line 12.

•
•

9.

If line 9 is greater than zero, enter amount from line 8 on line 12 below, and enter
amount from line 9 as a long-term capital gain on MI-1040D, line 7 or MI-1041D, line 10.

PART 2: Ordinary Gains and Losses

10. Ordinary gains and losses not included on lines 11 through 17 (include property held one year or less).

11.
12.
13.
14.
15.
16.

Loss, if any, from line 7, column D or E .................................................................
Gain, if any, from line 7, column D or E, or amount from line 8 .............................
Gain, if any, from Part 3, line 25 ............................................................................
Net gain or (loss) from U.S. Form 4684, lines 31 and 38a ....................................
Ordinary gain from installment sales from U.S. Form 6252, lines 25 or 36 ...........
Ordinary gain or (loss) from like-kind exchanges from U.S. Form 8824................

11.
12.
13.
14.
15.
16.

17. Add lines 10 through 16 in columns D and E. For fiduciary filers, enter the gain
or (loss) on the fiduciary return (see instructions) .................................................. 17.
18. For individual returns, complete lines a and b below.
18a. If the loss on line 11 includes a loss from U.S. Form 4684, line 35, column (b)(ii),
enter that part of the loss here................................................................................ 18a.
18b. Redetermine the gain or (loss) on line 17, excluding the loss (if any) on line 18a.
Enter here............................................................................................................... 18b.
NOTE: If the federal amount is a gain, enter on Schedule 1, line 12. If a loss, enter as a positive on Schedule 1, line 5. If the Michigan amount is
a gain, enter on Schedule 1, line 3. If a loss, enter on Schedule 1, line 23. If nonresident or part-year resident, carry amount on 18b to Schedule
NR, line 8 (see Schedule NR instructions).

+ 0000

Continue on page 2. This form cannot be processed if page 2 is not completed and included.

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2023 MI-4797, Page 2 of 2

Identifying Number

PART 3: Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254 and 1255
19. Description of Sections 1245, 1250, 1252, 1254 and
1255 property

Date Acquired
(MM-DD-YYYY)

Date Sold
(MM-DD-YYYY)

Percentage of Gain Subject to
Michigan Income Tax (divide number
of months after 10-01-1967 by total
number of months)

(A)
(B)
(C)
(D)

Relate lines 19(A) through 19(D) to these columns:

Property
(A)

Property
(B)

Property
(C)

Property
(D)

TOTAL

20. Enter amounts from U.S. Form 4797, line 24 ..................................
21. Enter portion of gain subject to Michigan tax.
(Multiply gain on line 20 by percentage computed on line 19.) ........
22. Enter from U.S. Form 4797 the total of lines 25(b), 26(g), 27(c),
28(b) and 29(b) in columns A through D..........................................
23. Enter portion of gain subject to Michigan tax.
(Multiply gain on line 22 by percentage computed on line 19.) ........
F
Federal

24. Enter in column F the total from line 20; enter in column G the total from line 21............
25. Enter in column F the total from line 22 and carry to line 13, column D.
Enter in column G the total from line 23 and carry to line 13, column E...........................
26. Subtract line 25 from line 24. Enter portion in columns F and G from other
than casualty or theft on Part 1, line 6, columns D and E.................................................

+ 0000

2023 69 02 27 6

G
Michigan

2023 Form MI-4797, Page 3

Instructions for Form MI-4797 MICHIGAN Adjustments of Gains and Losses
From Sales of Business Property MI-4797

General Information
Only use this form to adjust your Michigan taxable income
if you have capital gains or losses attributable to one of the
following:
• Gains or losses from the sale of certain types of properties
located in other states and/or subject to Michigan’s allocation
provisions. Gains or losses subject to Michigan’s
apportionment provisions, refer to the MI-1040H.
• Periods before October 1, 1967 (Section 271 adjustment). If
you file U.S. Schedule D or Form 4797 and you elect to adjust
under Section 271 of the Michigan Income Tax Act, you must
file the equivalent Michigan forms (MI-1040D or MI-4797).
You must include all items of gain or loss realized during the
tax year.
Michigan business income (loss) includes the distributive share
of income (loss) from a flow-through entity, including net shortterm and long-term capital gain (loss). Michigan business income
subject to apportionment is to be reported on the MI-1040H or
included on Form MI-461 (if applicable), do not use this form to
apportion those gains or losses.
Nonresidents and part-year residents, that are allocating capital
gains or losses, see instructions for Schedule NR, line 8.
Section 271. To apportion under Section 271, multiply the gain or
loss in column D by the number of months the property was held
after September 30, 1967. Divide the result by the total number of
months held. Enter the result in column E. For the purpose of this
computation, the first month is excluded if acquisition took place
after the 15th, and the last month is excluded if disposal took place
on or before the 15th. Gains from installment sales made before
October 1, 1967, must show federal gain in column D and zero
in column E. Gains from installment sales made after October 1,
1967, are subject to Michigan tax but may be apportioned under
Section 271.
Identification: For individual income tax filers, enter the filer’s
name and full nine-digit Social Security number at the top of the
form. For fiduciary filers, enter the name of the estate or trust and
full Federal Employer Identification Number (FEIN).

Line-by-Line Instructions
Lines not listed are explained on the form.
Line 2: Enter in columns A, B, C, and D the corresponding
information from your U.S. Form 4797. For column E, enter the
gain or loss subject to Michigan income tax.
Line 3: Enter in column D any gain from U.S. Form 4684, line
39. In column E enter the gain subject to Michigan income tax.
If the gain was realized from more than one casualty or theft and
some or all of the property was acquired prior to October 1, 1967,
include a copy of U.S. Form 4684 and a schedule showing the
computation of gain subject to Michigan income tax.

Line 6: Enter in column D the gain from column F, line 26. Enter
in column E the gain from column G, line 26.
Line 10: Enter other ordinary gains and losses from your
U.S. Form 4797. Enter federal gain or loss in column D. Enter
portion of gain or loss subject to Michigan income tax in
column E.
Line 13: Enter in column D the amount from line 25, column F.
Enter in column E the amount from line 25, column G.
Line 14: Enter gain or loss from U.S. Form 4684, lines 31 and
38a. If the gain or loss was from more than one casualty or theft,
include a copy of U.S. Form 4684 and a schedule showing the
computation of gain or loss subject to Michigan income tax.
Line 17: Enter a federal gain on MI-1041, Schedule 1, line 38.
Enter a federal loss as a positive number on MI-1041, Schedule 1,
line 33. Enter a Michigan gain on MI-1041, Schedule 1, line 33.
Enter a Michigan loss as a positive number on MI-1041, Schedule 1,
line 38. If the filer is a nonresident estate or trust, carry the
Michigan portion to MI-1041, Schedule NR, line 7, column B.
Line 20: Enter the total gain for each property from U.S.
Form 4797, line 24 and enter the total gain for all properties in the
total column.
Include your MI-4797 with your MI-1040 or MI-1041. Also
include a copy of your U.S. Form 4797 with your return.