Michigan Schedule of Partners

Schedule of Partners
4578, 2024 Michigan Business Tax Schedule of Partners
Attachment 08

Michigan Department of Treasury
4578 (Rev. 04-24)

2024 MICHIGAN Business Tax Schedule of Partners
Issued under authority of Public Act 36 of 2007.

Taxpayer Name (If Unitary Business Group, Name of Designated Member)

Federal Employer Identification Number (FEIN) or TR Number

Unitary Business Groups Only: Name of Unitary Business Group Member Reporting on This Form

Federal Employer Identification Number (FEIN) or TR Number

PARTNER IDENTIFICATION
1.

A
Name (If partner is an Individual,
enter Last, First, and Middle Initial)

a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q

B
FEIN, TR Number or
Social Security Number of Partner

C

D
Share of
Business Income*

% Owned

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

%

00

2.  Total of Column C (% Owned). Cannot exceed 100%....................................................................................................... 2.

%

3.  Total of Column D (Share of Business Income). Cannot exceed the partnership’s business income............................... 3.

00

*If any partner has a share of business income in column D of over $180,000 after loss adjustment, the Partnership is not eligible for the Small Business
Alternative Credit.
* If any partner has a share of business income in column D of over $135,000, the Partnership is not eligible for the Start-Up Business Credit.
If more space is needed, submit additional forms 4578. Identify taxpayer and complete Partner Identification on each additional form.
(See instructions.)

+

0000 2024 51 01 27 3

Instructions for Form 4578, Michigan Business Tax (MBT) Schedule of Partners
For all Partnerships claiming the Small Business Alternative Credit or Start-Up Business Credit

Purpose
To determine eligibility for the Partnership’s Small
Business Alternative Credit. Partnership means a taxpayer that
is required to, or has elected to, file as a Partnership for federal
income tax purposes.
This form also is required to be completed and included as
part of the return whenever a Partnership claims a Start-Up
Business Credit. A partnership cannot qualify for the Start-Up
Business Credit if any partner has a distributive share of more
than $135,000.
NOTE: A member of a Limited Liability Company (LLC)
is characterized for MBT purposes as a partner if the LLC is
taxed as a Partnership for federal purposes.
NOTE: A federally disregarded entity is required to file as if it
were a sole proprietorship if owned by an individual, or a branch
or division if owned by another business entity.

Line-by-Line Instructions
Lines not listed are explained on the form.
Name and Account Number: Enter name and account number
as reported on page 1 of the MBT Annual Return (Form 4567).
If more lines are needed for listing the partners, include
additional copies of this form and complete the name, account
number, and line 1 for each copy.
Unitary Business Groups: Complete one form for each
member that is a partnership (including an entity taxed
federally as such). Enter the Designated Member name in the
Taxpayer Name field and the member to whom the schedule
applies on the line below. On the copy filed to report the DM’s
data (if applicable), enter the DM’s name and account number
on each line.
Line  1: Partner Identification
•	 Columns  A and B: Identify each partner (including
Corporation, Partnership, and Trust) by name. Identify
partners who are individuals by Social Security number.
Partners that are Corporations, Partnerships, or Trusts should
be identified using a Federal Employer Identification Number
(FEIN) or Michigan Treasury (TR) assigned number.

NOTE: Column B: An individual or foreign entity that does
not have a Social Security number or FEIN may enter in
Column B “APPLD FOR” (an abbreviation for “applied for”) or
“FOREIGNUS” (an abbreviation for “foreign filer”).

100

•	 Column  C: Enter the percentage of profits or capital
interest of this Partnership owned by each partner. If
a partner owned this interest for a period less than the
Partnership’s tax year, multiply that partner’s percentage of
ownership by the number of months owned and divide the
result by the number of months in this Partnership’s tax
year.
•	 Column  D: Enter each partner’s distributive share of
income, losses, and deductions from U.S. Form 1065,
Schedule K-1. Use the Business Income Worksheet
(Worksheet 4746) in the MBT Forms and Instructions for
Standard Taxpayers (Form 4600) to calculate partnership
business income. Attach Worksheet 4746 to the filing. Each
partner’s distributive share includes guaranteed payments
to partners that are made to that partner. If any partner has
a share of business income in column D of over $180,000
after loss adjustment, the Partnership is not eligible for the
Small Business Alternative Credit. If any partner has a
share of business income in Column D of over $135,000, the
Partnership is not eligible for the Start-Up Business Credit.
IMPORTANT: For short-period returns, each partner’s share of
business income must be annualized to meet these requirements.

Annualizing
Multiply each applicable amount by 12 and divide the result by
the number of months the business operated or the person was
a partner. Generally, a business is considered in business for
one month if the business operated for more than half the days
of the month.
NOTE: If the business was in operation for less than a month it
is considered to have been in business for 1 month.
Line  2: If multiple pages of Form 4578 are included for one
separately filing taxpayer, or one member of a UBG, bring the
total of all line 1C entries to the main Form 4578.
Line  3: If multiple pages of Form 4578 are included for one
separately filing taxpayer, or one member of a UBG, bring the
total of all line 1D entries to the main Form 4578.
Include completed Form 4578 as part of the tax return filing.