Michigan Fiduciary Nonresident Schedule

Fiduciary Nonresident Schedule 
2023, Michigan Fiduciary Nonresident Schedule
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Michigan Department of Treasury
5537 (Rev. 02-23)

MI-1041 Schedule NR

2023 MICHIGAN Fiduciary Nonresident Schedule
Issued under authority of Public Act 281 of 1967, as amended.

Nonresident estates and trusts must include MI-1041 Schedule NR with Form MI-1041.
Name of Estate or Trust

Federal Employer Identification Number (FEIN)

INCOME ALLOCATION (Include all applicable federal schedules.)
A
Total

INCOME (from U.S. Form 1041)
1. Interest income ..........................................................................................
2. Dividends...................................................................................................
3. Business income or (loss) .........................................................................
4. Capital gain or (loss) (from MI-1041D, line 15A) .......................................
5. Rents, royalties, partnerships, other estates or trusts, etc. .......................
6. Farm income or (loss)................................................................................
7. Ordinary gain or (loss) from U.S. Form 4797 (see instructions) ................
8. Other income. Describe: _____________________________________

1.
2.
3.
4.
5.
6.
7.
8.

9. Total income. Add lines 1 through 8........................................................

9.

DEDUCTIONS (from U.S. Form 1041)
10. Interest....................................................................................................... 10.
11. Taxes ......................................................................................................... 11.
12. Fiduciary fees ............................................................................................ 12.
13. Charitable deduction.................................................................................. 13.
14. Attorney, accountant, and return preparer fees ......................................... 14.
15. a. Other deductions ................................................................................... 15a.
b. Other Michigan adjustments (see instructions). .................................... 15b.
16. Subtotal. Add lines 10 through 15b .........................................................

16.

17.
18.
19.
20.

17.
18.
19.

Adjusted total income or (loss). Subtract line 16 from line 9 ....................
Income distribution deduction....................................................................
Estate tax deduction (including certain generation-skipping taxes) ..........
Qualified business income deduction. Include U.S. Form 8995 or
8995-A .......................................................................................................
21. Exemption..................................................................................................

20.
21.

22. Total deductions. Add lines 18 through 21 ............................................. 22.
23. Total income of fiduciary before tax and capital loss limitation adjustment.
Subtract line 22 from line 17...................................................................... 23.
FIDUCIARY TAXABLE INCOME
24. Fiduciary’s Michigan capital loss from line 15B of MI-1041D. Enter loss
as a positive number. Do not enter a number if line 15B is a capital gain.
25. Taxes imposed on or measured by Michigan income deducted on
U.S. Form 1041 .........................................................................................

24.
25.

26. Combine line 23 column B, and lines 24 and 25 ....................................... 26.
27. Fiduciary’s Michigan capital loss from line 16 column E of the MI-1041D.
Enter the loss as a positive number............................................................ 27.
28. Income taxable to fiduciary. Subtract line 27 from line 26. Enter here
and on MI-1041, line 12.............................................................................. 28.

B
Michigan

C
Other States

2023 MI-1041 Schedule NR, Page 2

Instructions for MI-1041 Schedule NR, Fiduciary Nonresident Schedule
Purpose
Use this form to compute the income attributable to Michigan
for nonresident estates or trusts.

General Instructions
Income, deductions, and computations on lines 1
through 23 are comparable to the U.S. Form 1041. In
column A, enter the corresponding amounts from the
U.S. Form 1041. See “Line-by-Line” instructions for
additional information. In column B, enter Michigan’s portion
of the income. In column C enter the non-Michigan portion.
The following income is subject to Michigan tax and should be
entered in column B on lines 1 through 8:
• Income earned, received, or acquired in Michigan
• Income from personal services performed in Michigan
• Income from real or tangible personal property located in
Michigan
• Income, including interest, dividend, and other portfolio
income, from a business, trade, profession, or occupation
conducted in Michigan. If the business activity is in
Michigan and in another state, complete and include
Schedule of Apportionment (Form MI-1040H) to apportion
this income.
• Income of Electing Small Business Trust.
The following income received by a nonresident estate or trust is
not subject to Michigan tax and should be entered in column C,
on lines 1 through 8:
• Income from annuities
• Retirement and pension income
• Nonbusiness interest income
• Nonbusiness dividends
• Income from a business, trade, profession, or occupation
not conducted in Michigan.

LINE-BY-LINE INSTRUCTIONS

Line 4: Complete Adjustments of Capital Gains and Losses
(MI-1041D) before completing this line. Enter in column A,
the federal gain or (loss) from MI-1041D, line 15, column A.
Enter in column B the Michigan gain or (loss) from MI-1041D,
line 15, column A. Enter the difference in column C.
Line 7: Complete Adjustments of Gains and Losses from
Sales of Business Property (MI-4797) before completing this
line if the gain/loss on the U.S. Form 4797 is from the sale
of business property located in Michigan and the property
was acquired prior to October 1, 1967, or if you have gains/
losses from property subject to allocation and apportionment
provisions. Enter the Michigan portion from MI-4797, line 17
in column B. Enter the difference in column C.

Line 8: Enter other income not included on lines 1 through 7.
Include federal taxable income of Electing Small Business
Trusts from the ESBT Tax Worksheet attached to the
U.S. Form 1041. Also submit a copy of the worksheet with
the Michigan return. Include the excess business loss from
MI-461, line 10 as positive numbers in the appropriate
columns.
If you are a direct or indirect member of a flow-through entity
that elected to pay the Michigan flow-through entity tax and
apportioned the flow-through income using an MI-1040H, take
the result of one minus the apportionment percentage from
MI-1040H, line 8, and multiply that amount by your share
of those taxes paid and reported to you by that flow-through
entity and deducted on the flow-through entity’s federal tax
return. Enter that result in column B as a negative number and
in column C as a positive number. Do not enter an amount in
column A for this adjustment.
Line 15b: Enter income and related expenses from Michigan
oil and gas and nonferrous metallic minerals extraction to
the extent subject to Michigan severance tax and included
in federal taxable income in column B. Enter any Michigan
net operating loss (NOL) deduction in column B. Enter the
entire federal NOL deduction, if any, in column C. Include
documentation to support each adjustment.
Line 25: Enter taxes deducted on U.S. Form 1041, line 11,
which were imposed on Michigan income, such as State or city
income taxes.
Do not include the allocated share of taxes paid by a
flow-through entity under the Michigan flow-through entity
tax and deducted on the flow-through entity’s federal tax
return on this line.
Line 26: Combine line 23 column B, and lines 24 and 25. If
line 26 is less than zero, enter as a negative number. Do not
enter “0” if the amount is less than zero.