Form 5774 Instructions — Schedule for Reporting Member Information for a Flow-Through Entity (TY2025)

Instructions for Form 5774
Schedule for Reporting Member Information for a Flow-Through Entity
Purpose
This form is a supporting schedule used to report member information for a flow-through entity filing the Flow-through Entity Tax Annual Return (Form 5772). All taxpayers must complete this schedule and submit with their return.

# General Instructions

Part 1 of this form reports information about direct members of the filer that are Corporation Income Tax taxpayers. Part 2 of this form reports information about members that are direct or, if known, indirect members of the filer and are Individual Income Tax taxpayers or other flow-through entities. Use the information reported on the filer's Flow-through Entity Tax Annual Return (Form 5772) to complete this schedule. Filers within a tiered structure should report indirect members' information if known. This can significantly help streamline the processing of member returns that claim FTE tax credits.
NOTE: To avoid data loss upon saving and submission, do not include punctuation in the names of members when completing necessary return schedules. For example, enter the member name "John W. Doe" as "John W Doe" or "ABC INC." as "ABC Inc".
Partnerships with Loss Partners: If one or more partner(s) is allocated negative income (loss) (e.g., because there is a special allocation of income, expense, gain, or loss as permitted under the internal revenue code), that loss cannot be reported on this form. Instead, those partners' Share of Income, Michigan Share of Income, and Share of Flow-Through Entity Tax Eligible for Credit must be reported as zero. Totals of partner income and tax on Form 5774 must reconcile to the corresponding lines on Form 5772, so partners with positive shares as reported on this form may not necessarily reflect actual taxable income or tax on the members' income tax returns.

# Part 1: Corporations, Insurance Companies, and Financial Institutions

Name and FEIN: Identify each direct member of the filer that is a corporation, insurance company, or financial institution, as those terms are defined under Part 2 of the Michigan Income Tax Act (the CIT). Do not include in this column any indirect members of the filer.
NOTE: The members reported in Part 1 will not be allocated any FTE tax credit. Instead, business income tax base allocable to these members must be excluded. To report other types of members who should be allocated tax credits, see Part 2 of this form.
Share of Income: Report each member's share of the total business income tax base of the filer before apportionment.
For filers that do not have income from non-electing entities reported on Form 5773, the amounts reported in this column is based on each member's allocated share of the business income tax base, the amount reported on line 21. For filers that have income from non-electing entities reported on Form 5773, add the amount reported Form 5772, line 21 to the total amount reported in Form 5773, Column H, and then allocate that combined amount to each member.
Michigan Share of Income: Report the Michigan Share of
Income by entering each member's allocated share of the total business income tax base reported on Form 5772, Line 24. The sum of the amounts reported in this column must equal the Tax Base Adjustment reported on Form 5772, Line 25.

# Part 2: Individuals, Fiduciaries, and Other

Flow-through Entities
If indirect members are known, identify them and their respective shares of income and credits in lieu of listing the direct member through which the indirect members own the filer.
Name of Business or Individual and FEIN/SSN: Identify each member of the filer that is an individual, fiduciary, or another flow-through entity.
Share of Income: Report the total share of income allocated to members that are individuals, fiduciaries, and other flowthrough entities. For filers that do not have income from nonelecting entities on Form 5773, this amount is based on each member's allocable share of the business income tax base, the amount reported on line 21. For filers that have income from non-electing entities reported on Form 5773, add the amount reported Form 5772, line 21 to the total amount reported in Form 5773, Column H, and then allocate that combined amount to each member.
Michigan Share of Income: Report the Michigan Share of
Income by entering each member's allocated share of the income subject to tax reported on Form 5772, Line 26.
Share of FTE Tax Eligible for Credit: Report each member's share of FTE tax eligible for the credit. The total amount from all members in this column must equal the total tax liability reported on Line 27 of Form 5772. Do not include on this line credit that will be allocated to any member for FTE taxes paid by another flow-through entity.
NOTE: The amount reported on this line may not be equal to the credit that must be reported by the filer to each member for that tax year. For purposes of the FTE tax credit eligible to be claimed by members, only taxes paid by the due date of a timely filed return, including extensions, may be claimed for a credit in the member's current tax year. Amounts paid after that date will be eligible for credit, but only in a later tax year. Flow-through entities must report to their members the amount of credit eligible to be claimed in the member's same tax year based on the amount of tax paid by the due date of this timely filed return, including any extension. For information on the reporting requirements of the filer, see the flow-through entity tax webpage, which links from the Business Taxes page at www.michigan.gov/taxes/business-taxes.