Mich. Admin. Code R 206.8 — Losses on sale or exchange of United States obligations; reporting

Rule 8. Losses on the sale or exchange of United States obligations, the income of
which the state is prohibited from taxing, shall be subtracted from federal adjusted
gross income. To do this, file form MI-1040D and enter a zero in column "Z" of the
line on which the loss is reported.
(a) Example:
Mr. Smith is reporting a gain from the sale of stock in the amount of $2,100.00
and a loss from the sale of United States obligations in the amount of $900.00
(b) These transactions are reported on form MI-1040D as follows:
_____________________________________________________________________
_______________
Federal
Michigan
Date Date Gain
Gain
Acquired Sold Col. Y
Co. Z
_____________________________________________________________________
______________
6. Stock 9-30-68 10-1-77 $2,100.00
$2,100.00
U.S. Obligation 4-1-69 7-10-77 (900.00)
- 0 -

7. Capital gain distribution

8. Enter gain if applicable from form MI-4797 line 4(a)(1)

9. Enter your share of net ling-term gain or (loss)
from partnerships and fiduciaries

10. Enter your share of net long-term gain from
small business corporations (subchapter S)

11. Net gain or (loss) combine lines
6 through 19 $1,200.00
$2,100.00

12. Long-term capital loss carryover a ttributable to ( )
( )
years beginning after 1969

13. Net long term gain of (loss) combine lines 11 and 12 $1,200.00
$2,100.00

14. Combine the amounts shown on line 5 and 13 $1,200.00
$2,100.00
and enter the net gain (loss) here

15. If line 14 shows a gain -
(a) Enter 50% of line 13 or 50% of line 14, whichever
is smaller. Enter zero if there is a loss or no entry on line 13 $600.00
$1,050.00
(b) Subtract line 15(a) from line 14. Enter
here and carry amount in column Y to MI-1040 line 39(a)
carry amount in column Z to MI-1040 line 32(a) $600.00
$1,050.00