MBT FAQ Index. Updated 9/19/2008 1



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*Words surrounded by quotation marks are defined in the MBT statute* A Accounting Methods Actual or Annual A8, A11, A31, C33, U28, M55 Cash or Accrual C32, C40, M16, M33, U17, U21 Accounts Receivable Factoring Companies B30, M54 Active Shareholder C3, C20 Actively Solicits Ap4, B11, F1, N2, N4, N5, N6, N7, N8, N10, N11, U12 Actual Method, Computation of Tax for First Taxable Year Less Than 12 Months A8, A11 Amended Returns C9, C13 Annual Method, Computation of Tax for First Taxable Year Less Than 12 Months A8, A11, A31 Annual Returns A6, A7, A10, A11, A14, A17, A20, Fi6 Apportionment Ap1, Ap2, Ap3, Ap5, M2, M5, N1, N4, N5, U3, U5 Arts and Culture Credit C15, C26 Associations (Condominiums, Homeowners and Timeshares) Mi29 B Base Investment Fi8 Book Tax Difference B5, B6, Mi9 Bottle Deposit Administration Credit C34, Mi33, M55 Brother-Sister Corporations U7, U9, U24, U25, U33, U34 Brownfield Rehabilitation Credit C7, C8, C9, C13, C24, C26, U22 Business Activity Ap1, Ap2, Ap5, B4, B7, B20, B21, B29, B30, M2, M10, M11, M40, M42, M52, M54 Business Income A22, A25, Ap2, B2, B3, B4, B7, B12, B14, B16, B18, B20, B21, B22, B23, B29, B30, M10, M11, M12, M13, M27, M38, M40, M42, M43, M44, M52, M54 Business Income Tax Base Administrative A14 Calculation A22, A25, A27, B10, B12, B19, B22, B27, B29, C14, C33, Mi20, M15, M27, M36, M38, M42, M55, N9 Included Ap2, B4, B8, B20, B21, B28, M10, M11, M40, M49, M54 Deduction B2, B3, B5, B6, B18, B27, Mi9, Mi10 Unitary Business Group U5, U27, U32 Business Loss, MBT B10, M15, M36, U27 C Calendar Year Filers A4, A15, A17, A31 Capital Gains B4, B8, B9, B21, B23, B25, B28, M10, M26, M42, M44, M48, M49 Cancellation of Debt (COD) Income B21, M42 Carry Forwards in MBT M15 Carry Forwards from SBT Business Loss B10, M5, M34, M35 Credits C7, C8, C9, C19, C24, C26, C27, U22 Overpayments A16 Casual Transaction B28, M49 Charitable Trust Mi14 Check the Box Rule B17, Mi25, Mi28 Combined Credit Limitation C31, M41 Combined Return A10, A15, M25 Updated 9/19/2008 1

Compensation B3, C2, C3, C4, C21, C28, C32, C35, C38, C40, Fi9, Mi4, M9, M14 Compensation Credit B3, C4, C14, C16, C21, C23, C26, C28, C32, C35, Mi17 Computation of Tax for First Taxable Year Less Than 12 Months A8, A11, M34 Contractor M7, M22, M24 Control Test, Unitary Business Group C35, U4, U6, U7, U9, U10, U24, U25, U33, U34 Controlled Foreign Corporations Mi27, U31 Controlled Groups U7, U34 Cooperatives Mi13 Core Community Fi10 Corporation B3, B11, B18, B24, C35, Mi19, Mi28, M38 Credit Card Processing Fees M21 Credit Recapture C27 Credits C26, Mi17 See Also, Arts and Culture Credit Bottle Deposit Administration Credit Brownfield Rehabilitation Credit Carry Forwards from SBT Compensation Credit Farmland Preservation Tax Credit Film and Digital Media Infrastructure Project Credit Film Production Credit Gross Receipts Filing Threshold Credit Historic Preservation Credit Industrial Personal Property Tax Credit Investment Tax Credit New Dealer Motor Vehicle Inventory Credit Renaissance Zone Credit Research and Development Credit Small Business Alternate Tax Credit D Dealer Disposition C33, M55 Debt Forgiven B21, M42 Deferred Tax Liability Deduction B5, B6, Mi9, Mi10 Depreciation B12, C31, M27, M41, M45 Designated Member U17, U23 Direct Production Expenditures Fi1, Fi2, Fi3, Fi4, Fi5, Fi9, Fi10 Disregarded Entity B17, U30, U31, Mi27, Mi28 Dividends A25, B8, B9, B14, B23, M18, M44, M47 Domestic Production Activities Deduction B18, M38 Double Taxation B13, B19 Due Dates A4, A6, A10, A15, A16, A17, A19, A20, A25, A31, Mi26, M25 E E-Services A12 Effective Date A2 Electronic Funds Transfer A15 Eligible Production Company Fi6, Fi7 Estate or Gift Planning Purposes B8, B14, B16, B24, M12, M18, M26, M29, M31, M46, M47 Updated 9/19/2008 2

Estimated Returns and Payments A3, A4, A10, A15, A17, A19, A22, A23, A24, A25, A29, A30, Mi21, M25 Exemptions Mi19, Mi29 See Also, Farmers Cooperative Corporations Exemption Nonprofit Cooperative Housing Corporations Exemption Extension of Time to File A7, A10, A16, A20, A30, A31, Mi26 F Factoring B30, M54 Family Limited Partnership B8, B16, M1, M12, M18, M26, M31 Farmers Cooperative Corporations Exemption Mi13 Farmland Preservation Tax Credit C22, C26 FAS 109 Deduction B5, B6, Mi9, Mi10 Federal Taxable Income A22, A25, B18, B28, C30, Mi11, M16, M27, M38 Federal Treaty Benefit Mi20 Filing Threshold A6, A18, A27, Ap4, C17, Mi16, Mi22, N6, U11, U18, U35 Film and Digital Media Infrastructure Project Credit (Infrastructure Credit) Fi7, Fi8 Film Credit MBT Filing Requirement Fi6 Film Production Credit Fi1, Fi2, Fi3, Fi4, Fi5, Fi6, Fi7, Fi9, Fi10 Final SBT Return A11, A16, A29, A31, Mi26 Financial Institution A18, A27, C26, F1, Mi6, N10 FIRE (Financial Sector, Insurance Sector and Real Estate Sector) Mi6 First Taxable Year Less Than 12 Months, Computation of Tax A8, A11, M34 Fiscal Year Filers A4, A10, A11, A15, A17, A19, A20, A25, A29, A31, M35, U28 Flow-Through Entities (Pass-Through Entities) B1, B18, Mi8, M38, N3, U16 Foreign Insurer I1, U13 Foreign Operating Entity B14, Mi27, M32, U33, U36 Foreign Person C30, Mi1, Mi27, N9, U33 Forms A10, A14 Franchise Tax A18, A27, N4, N10 Fuel Purchases, Wholesale M45 G Gasoline Purchases, Wholesale M28, M45 Goodwill B28, M49 Gross Direct Premiums Tax Base Ap3 Gross Receipts Apportionment Ap2, M2 Calculation C33, M16, M53, M55 Deductible from M7, M8, M9, M17, M21 Defined C33, Mi22, M3, M6, M11, M12, M13, M18, M19, M26, M29, M44, N6 Exclusions B16, B22, B23 Gross Receipts Filing Threshold Credit A25, C26, Mi16, U11, U18, U35 H Handling Charges B20, M40 Historic Preservation Credit C7, C8, C9, C13, C26, U22 Honeywagons/Star Trailers Fi8 Updated 9/19/2008 3

I Individual Income Tax Mi8, Mi15, N3, U16 Individual Investment Activity/Income Defined B8, B9, B14, B23, M13, M18, M26, M44 Sales Ap5, B15, B24, B25, M30, M46, M48 Taxpayers B16, M12, M31, M44 Industrial Personal Property Tax Credit C25, C26 Installment Sale C33, M55 Insurance Company A18, A27, Ap3, I1, I2, C23, C26, Mi6, N2, U13, U15 Intangible Asset A25, B7, B13, B19, M11 Intercompany Transactions U11, U18, U20, U33, U35 Interest, MBT A7, A22, A24, A25 Interest Income A25, B8, B9, B14, B23, M18, M44, M47 Inventory Mi7, M7, M14, M28, M37, M43, M51 Investment Clubs/Partnerships Ap4, B16, M31 Investment Tax Credit B22, C14, C16, C23, C26, C27, C31, C33, Mi17, M41, M43, M55 Recapture C27, B22, M43 L Labor M7 Like-Kind Exchange B22, M43 Limited Liability Company B3, B11, B17, Mi28 Loss adjustment C36, Mi32 Lottery Dealers M53 M Made/Based in this State Fi1, Fi2, Fi3, Fi4, Fi5, Fi9 Mail Order Company N11 Materials and Supplies M4, M7, M8, M14, M17, M37, M45 Member Mi15, Mi25, Mi28, M30, M38, M48, M50 Modified Gross Receipts tax base Administrative A14, M39, Mi12 Calculation A22, A24, A25, A27, B10, B12, B27, B29, C14, C33, Mi4, Mi20, M5, M15, M17, M22, M27, M32, M34, M35, M36, M41, M42, M55 Included Ap2, B4, B8, B20, B21, B28, Mi3, M6, M10, M11, M19, M21, M40, M47, M49, M54 Deduction B27, C31, M22, M24, M34, M35, M41 Unitary Business Group M32, U5, U20, U27, U32 Monthly MBT Estimates A15, M25 Motion Picture Equipment Rental Fi5 Mobile, Movable, Immovable Property, Film Credits Fi8 N Natural Gas Mi7, M14, M45 New Motor Vehicle Dealers Mi12, M25, M39 New Dealer Motor Vehicle Inventory Credit C26, M38 Nexus A32, Ap3, Ap4, B11, F1, N1, N2, N3, N4, N5, N8, N10, N11, U1, U2, U12 Nonprofit Cooperative Housing Corporations Exemption Mi13 Notice of No Return A28 Updated 9/19/2008 4

O Officer C2, C3, C4, C5, C10, C28, C29, C32, C35 Overpayments, SBT A16 P Partner Ap4, B1, Mi15, M29, M30 Partnership Ap4, B1, B3, B11, B16, B21, Mi28, M18, M29, M30, M31, M38, M42 Pass-Through Entities B1, B18, Mi8, M38, N3, U16 Payroll Processing Business, Film Credits Fi2 Penalty A7, A29 Person Mi23, Mi25, Mi27, U4, U14, U26, U31 Personal Investment Activity/Income Defined B8, B9, B14, B23, M13, M18, M26, M44 Sales Ap5, B15, B24, B25, M30, M46, M48 Taxpayers B16, M12, M31, M44 Personal Services Company (PSC) Fi7 Physical Presence Ap4, B11, Fi5, N2, N4, N8, N10, N11 PL 86-272 (Public Law 86-272) N2, N3, N9, N10, N11, U16 Production Insurance Fi3 Professional Employer Organization (PEO) C2, C3, C4, Fi7, Mi2, Mi4 Public Libraries Mi35 Purchases from Other Firms A25, B12, B20, B29, C31, C33, Mi7, M4, M7, M8, M9, M14, M17, M20, M21, M22, M23, M24, M28, M32, M34, M37, M41, M45, M51, M52, M54, M55, U20, U27, U32 Q Q Sub Mi28, U16 Qualified Film and Digital Media Infrastructure Project Fi8 Qualified Personnel Expenditures Fi1, Fi9 Qualified Production Fi9, Fi10 Quarterly Estimates A3, A4, A10, A15, A19, A23, A25, A29 R Rates A25, B10, C23, M15 Real Estate Investment Trust (REIT) U2 Real Property, Sale/Lease/Rental of Ap2, C33, Mi7, M2, M55 Registration A9, N11, U23 Relationship Tests, Unitary Business Group U4, U6, U7, U9, U25, U33, U34 Renaissance Zone Credit C1, C26 Rental Income Ap2, B21, M2, M3, M42 Research and Development Credit C14, C16, C23, C26, Mi17 Retaliatory Tax I1, U13 Royalties & Other Intangibles A25, B7, B13, M11 S Safe Harbor A22, A24 Sale or Sales Ap1, Ap5, B28, B29, M49 Sales Factor Ap1, Ap2, Ap3, M2, N1, U1, U3, U5 Updated 9/19/2008 5

Sales Tax Mi3, M6 SBT Estimates Mi21 Science Museums C15 Self-Employment Net Earnings A25, B2, B3, B26, C28, C32, M50 Service Providers B2, M17, N2 Severance Tax Mi31 Shareholder B1, B25, C20, Mi8, Mi15, M30, M38, U16 Shipping & Delivery Charges Mi7, M4, M7, M8, M14, M17, M21 Short Period Return A8, A11, A16, A17, A25, A31, Mi26, M34, M35 Single Member Limited Liability Company (SMLLC) Mi28, U16, U30 Small Business Alternative Credit Attribution C20 Calculation C3, C14, C17, C26, C29, C30, C36, Mi16, Mi17, Mi32 Disqualifiers C2, C3, C5, C10, C18, C29, C35 Subcontractors M20, M22, M23, M24 Unitary Business Group C5, C29 Special Purpose Entities U4 Staffing Company Mi2, Mi4, M7, M9, M14 Stock Sale B23, B24, B25, M46, M48 Subchapter S Corporation B1, B3, B9, C10, Mi8, Mi11, Mi28, M13, M38 Subcontractor M7, M14, M20, M22, M23, M24 Surcharge A22, A23, A25, B5, B6, C14, C23, Mi9, Mi10, Mi16, Mi17 System Software Royalties B7, M11 T Tangible Personal Property Ap3, Fi4, Mi3, M6, M17, M19 Taxed In Another Jurisdiction State N4, N5 Foreign Country B13 Tax Exempt Organizations Mi13 Tax Year C19, U29 Taxable Income Mi15 Taxpayer C5, C29, Mi27, U3, U4, U11, U18, U28 Theater Owners M14 Throwback Sales Ap3 Tooling System M52 Transportation Company U5 U Unitary Business Group Administrative U23 Apportionment N1, U1, U3, U5, U18 Calculation M5, M15, M32, M47, U11, U14, U17, U20, U21, U25, U27, U28, U29, U32, U35 Combined Return I2, Mi28, M32, U12, U14, U15, U17, U20, U21, U23, U25, U28, U29, U32, U33, U34, U35 Credits C5, C24, C29, C35, U22 Definition U2, U6, U7, U10, U19, U24, U33 Foreign B13, Mi1, Mi27, U30, U31 Insurance Companies I2, U15 Nexus U12 Updated 9/19/2008 6

Tests, Control or Relationship C35, U4, U6, U7, U9, U10, U24, U25, U33, U34 Voluntary Disclosure Mi23, U26 United States Person Mi27, U30, U31 Use Tax M19 V Vehicles (Trade-Ins) M51 Voluntary Disclosure A32, Mi23, Mi24, Mi30, U26 W Watercraft Dealers Mi12, M25, M39 Withholding Requirement, Film Credits Fi7 Updated 9/19/2008 7