Does the Modified Gross Receipts Tax component of the Michigan Business Tax Act tax capital gains of investors, including trusts, Family Limited Partnerships and individuals?
The following answer has been rescinded and replaced by M26. Yes, the modified gross receipts tax is a tax on every taxpayer with nexus. “Taxpayer” means a person or a unitary business group liable for a tax, interest, or penalty under this act. The term “person” means an individual, firm, bank, financial institution, insurance company, limited partnership, limited liability partnership, copartnership, partnership, joint venture, association, corporation, subchapter S corporation, limited liability company, receiver, estate, trust, or any other group or combination of groups acting as a unit. Therefore, the modified gross receipts tax is imposed on the above named persons if taxpayer nexus with Michigan exists. The modified gross receipts tax base is a taxpayer’s gross receipts less purchases from other firms before apportionment. The definition of “gross receipts” means the entire amount received by the taxpayer from any activity whether intrastate, interstate, or foreign commerce car
Related Questions
- Does the Modified Gross Receipts Tax component of the Michigan Business Tax Act tax capital gains of investors, including trusts, Family Limited Partnerships and individuals?
- If I start a new retail business or purchase an existing retail business, what are my sales, use and gross receipts tax responsibilities?
- Will Treasury administratively allow a carryforward of a negative modified gross receipts tax base?
