Michigan Adjustment of Capital Gains and Losses

Adjustment of Capital Gains and Losses
2023 MICHIGAN Adjustments of Capital Gains and Losses MI-1040D
Reset Form
Michigan Department of Treasury (Rev. 05-23), Page 1 of 2

2023 MICHIGAN Adjustments of Capital Gains and Losses MI-1040D
Issued under authority of Public Act 281 of 1967, as amended.

Include with Form MI-1040. Type or print in blue or black ink.
Round all money items to whole dollars.

Attachment 15

Filer’s First Name

M.I.

Last Name

Filer’s Full Social Security No. (Example: 123-45-6789)

If a Joint Return, Spouse’s First Name

M.I.

Last Name

Spouse’s Full Social Security No. (Example: 123-45-6789)

PART 1: SHORT-TERM CAPITAL GAINS AND LOSSES
(ASSETS HELD ONE YEAR OR LESS)
1. Combine short-term totals from MI-8949, line 2 and U.S. Form 1040
Schedule D, line 1a, column h..............................................................

D
Federal Gain (Loss)

E
Michigan Gain (Loss)

Federal Gain (Loss) from
Column h of U.S. Schedule D

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

1.

2. Short-term gain from U.S. Form 6252, and short-term
gain (loss) from U.S. Forms 4684, 6781 and 8824...............................
3. Net short-term gain (loss) from partnerships,
S corporations and fiduciaries from Schedule K-1(s) ...........................

3.

4. Short-term capital loss carryover from 2022.........................................

4. (

5. Net short-term gain (loss), combine lines 1 through 4..........................

5.

2.

PART 2: LONG-TERM CAPITAL GAINS AND LOSSES
(ASSETS HELD MORE THAN ONE YEAR)
6. Combine long-term totals from MI-8949, line 4 and U.S. Form 1040
Schedule D, line 8a, column h..............................................................

) (

)

D
Federal Gain (Loss)

E
Michigan Gain (Loss)

Federal Gain (Loss) from
Column h of U.S. Schedule D

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

6.

7. Gain from U.S. Form 4797; long-term gain from U.S. Forms 2439 and
6252; and long-term gain (loss) from U.S. Forms 4684, 6781 and 8824...
8. Net long-term gain (loss) from partnerships,
S corporations and fiduciaries from Schedule K-1(s) ...........................

8.

9. Capital gain distributions ......................................................................

9.

7.

10. Long-term capital loss carryover from 2022 ......................................... 10. (

) (

)

11. Net long-term gain (loss),combine lines 6 through 10 .......................... 11.

PART 3: SUMMARY OF SHORT- AND LONG-TERM GAINS AND LOSSES

Col. F - Federal

Col. G - Mich.

12. Combine lines 5 and 11 of column D, and enter on line 12, column F.
Combine lines 5 and 11 of column E, and enter on line 12, column G.
GAIN. If line 12 is a gain, carry the gain amount in column F to Schedule 1,
line 12, and carry the gain amount in column G to Schedule 1, line 3. Nonresidents
and part-year residents, see instructions for Schedule NR, line 8 ................................ 12.
13. LOSS. If line 12 shows a loss, enter in each column the smaller of
(a) The loss on line 12; or (b) $3,000 (if married filing separately, $1,500). Carry loss
amount in column F to Schedule 1, line 5, as a positive amount. Carry loss amount
in column G to Schedule 1, line 23, as a positive amount. Nonresidents and part-year
residents, see instructions for Schedule NR, line 8....................................................... 13. (

+ 0000

2023 65 01 27 6

) (

)

Continued on Page 2.

2023 MI-1040D, Page 2 of 2

Filer’s Full Social Security Number

PART 4: COMPUTATION OF CAPITAL LOSS CARRYOVERS
FROM 2023 TO 2024
14. Enter amount from U.S. Form 1040, line 11 .............................................................. 14.
15. Enter amount from U.S. Form 1040, line 14.............................................................. 15.
16. Taxable income (see instructions) ............................................................................. 16.
17. Enter the loss from line 13 as a positive amount.................................................... 17.
18. Combine lines 16 and 17. If less than zero, enter “0”............................................. 18.
19. Enter the smaller of line 17 or line 18 ..................................................................... 19.
NOTE: If line 5 and line 13 are losses, go to line 20; otherwise, skip lines 20 through 24.
20. Enter the loss from line 5, columns D and E, as a positive amount ....................... 20.
21. Enter the gain, if any, shown on line 11, columns D and E..................................... 21.
22. Enter the amount shown on line 19 ........................................................................ 22.
23. Add lines 21 and 22................................................................................................ 23.
24. Short-term capital loss carryover to 2024.
Subtract line 23 from line 20. If less than zero, enter “0”........................................ 24.
NOTE: If line 11 and line 13 are losses, go to line 25; otherwise, skip lines 25 through 31.

25. Enter the loss from line 11, columns D and E, as a positive amount...................... 25.
26. Enter the gain, if any, from line 5, columns D and E............................................... 26.
27. Enter the amount from line 19 ................................................................................ 27.
28. Enter the amount, if any, from line 20..................................................................... 28.
29. Subtract line 28 from line 27. If less than zero, enter “0”........................................ 29.
30. Add lines 26 and 29................................................................................................ 30.
31. Long-term capital loss carryover to 2024.
Subtract line 30 from line 25. If less than zero, enter “0”........................................ 31.

+ 0000

2023 65 02 27 4

Col. F - Federal

Col. G - Mich.

2023 MI-1040D, Page 3

Instructions for Completing Form MI-1040D

When to File
NOTE: 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. Form 1040 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; or
• Gains or losses from the sale or exchange of U.S.
obligations that cannot be taxed by Michigan.
General Information
Michigan Form MI-1040D follows the U.S. Schedule D and
all the information necessary for completing Form MI-1040D
should be taken from your U.S. Schedule D.
Form MI-1040D computations must be carried to
Schedule 1 or Schedule NR as applicable. These forms
must be included with your Form MI-1040.
Nonresidents and part-year residents, that are allocating
capital gains or losses, see instructions for Schedule NR,
line 8.
Michigan business income (loss) includes the distributive
share of income (loss) from a flow-through entity, including
net short-term 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.
Rounding Dollar Amounts

Show money items as whole dollar amounts. Round down
amounts less than 50 cents. Round up amounts of 50
through 99 cents. Do not enter cents.
Identification

Be sure to enter your name(s) and Social Security
number(s) at the top of the form.
Parts 1 and 2
Lines not listed are explained on the form.
Federal Information

Line 1. The amount entered on this line includes a
combined total from both the MI-8949, line 2 and
U.S. Form 1040 Schedule D, line 1a, column h.

For lines 2, 3, 4, 7, 8, 9 and 10, column D, enter the
amounts from U.S. Form 1040 Schedule D, for the
corresponding line numbers listed below:
Corresponding lines on MI-1040D and
U.S. Schedule D
MI-1040D
2
3
4
7
8
U.S. Schedule D

4

5

6

11

12

9

10

13

14

Line 6. The amount entered on this line includes a
combined total from both the MI-8949, line 4 and
U.S. Form 1040 Schedule D, line 8a, column h.
Michigan Information

Enter the portion of federal gain and loss subject to
Michigan income tax on lines 2, 3, 4, 7, 8, 9 and 10,
column E.
Section 271 of the Michigan Income Tax Act

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.
Gains or losses from the sale of property before
October 1, 1967 that have a federal excess business loss
limitation must make the adjustment on this form.
Part 3
Follow the instructions on Form MI-1040D to exclude
portions of capital gains or losses that cannot be taxed by
Michigan.
NOTE: When figuring which negative number is smaller,
treat both numbers as if they were positive. Enter the
number on line 13 as a positive amount on Schedule 1.
Part 4
Part 4 is similar to the Capital Loss Carryover Worksheet
from the U.S. Schedule D instructions. Follow the
instructions on the MI-1040D. Enter federal figures in
column F and Michigan figures in column G.
Line 16: In column F enter the result of subtracting line 15
from line 14. In column G enter the result of subtracting
MI-1040, line 13 from MI-1040, line 12. If either amount
is a loss, enter as a negative.