Mich. Admin. Code R 206.19 — Adjustment of pre-tax gains or losses

Rule 19. (1) A taxpayer, whose federal adjusted gross income includes gains and
losses realized in the tax year from the disposition of property acquired prior to October
1, 1967, which are described in and subject to the provisions of subchapter P of the
internal revenue code, 26 U.S.C.S 1201 et seq., may reduce taxable income by the
portion of gain or lo ss attributable to the period befo re October 1, 1967. When this
election is made, it shall include all items of g ain o r l o s s real ize d d u rin g th e
taxable year.
(2) To compute this adjustment a fracti on is applied to the gain. The
denominator is the total months held and the numerator is th e number of months held
after October 1, 1967. In making this calcul ation, property acquired or disposed of
from the first to the fifteenth of the month shall be counted from the first of the month
and property acquired or disposed of af ter the fifteenth of the month shall be counted
from the last day of the month.
(3) Losses resulting from the application of this rule shall not be carried forward.