Mich. Admin. Code R 206.6 — Income from obligations and se curities of states other than

Michigan.
Rule 6. (1) Gross interest and dividend income from obligations and securities
of states other than Michigan, and their polit ical subdivisions, not subject to
federal income taxes, including such in terest and dividends from qualifying mutual
funds, shall be added to adjusted gross income.
(2) The income may be reduced by re lated expenses no t deducted in
computing federal adjusted gross income because of the internal revenue code, 26
U.S.C. S265(1).

(a) Example:

Gross interest income from state of Ohio bonds…………. $600.00

Expense (investment counseling fees, bank charges
brokerage fees)……………………………………………. 32.00
_______
Interest income to be added to adjusted gross income…… $568.00

(b) Interest on indebtedness incurred in carrying the obligation or security is not
deductible from the interest or dividend income.