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Michigan Free Printable 2019 Application for Michigan Net Operating Loss Refund MI-1045 for 2020 Michigan Application for Michigan Net Operating Loss Refund

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Application for Michigan Net Operating Loss Refund
2019 Application for Michigan Net Operating Loss Refund MI-1045

Reset Form Michigan Department of Treasury (Rev. 05-19) Issued under authority of Public Act 281 of 1967, as amended. MICHIGAN Net Operating Loss Schedule MI-1045 Attachment 29 Type or print in blue or black ink. Year (YYYY) For loss year Filer’s First Name If a Joint Return, Spouse’s First Name 1. Month-Year (MM-YYYY) or for loss year beginning Month-Year (MM-YYYY) and ending M.I. Last Name Filer’s Full Social Security No. (Example: 123-45-6789) M.I. Last Name Spouse’s Full Social Security No. (Example: 123-45-6789) Check the box to forgo the entire carryback period for the farming NOL. When you check the box, you are electing to carry the farming NOL forward instead of carrying it back to previous years. Once the election is made, it is irrevocable. PART 1: COMPUTE THE NET OPERATING LOSS (NOL) 2. Adjusted Gross Income (AGI). Enter the amount from MI-1040, line 10 of the loss year .................. Additions. Enter the corresponding amounts from Schedule 1. 3. Gains from Michigan column of MI-1040D and MI-4797 from Schedule 1, line 3 .............................................................................................................. 3. 00 4. Losses attributable to other states from Schedule 1, line 4 .......................... 4. 00 5. Net loss from federal column of your Michigan MI-1040D or MI-4797 from Schedule 1, line 5 .......................................................................................... 5. 00 6. Oil, gas, and nonferrous metallic mineral expenses (Michigan sourced) deducted to arrive at AGI from Schedule 1, line 6 ......................................... 6. 00 7. Federal net operating loss deduction included in AGI from Schedule 1, line 7. 7. 00 2. 00 8. Total. Add lines 3 through 7 ................................................................................................................. 8. Subtractions. Enter the corresponding amounts from Schedule 1. 9. Gains from federal column of Michigan MI-1040D and MI-4797 from Schedule 1, line 12 ..................................................................................... 9. 00 10. Income attributable to another state from Schedule 1, line 13 ..................... 10. 00 11. Oil, gas, and nonferrous metallic minerals income (Michigan sourced) included in AGI from Schedule 1, line 19 ........................................................ 11. 00 12. Miscellaneous subtractions from Schedule 1, line 21 (see instructions) ...... 12. 00 13. Total. Add lines 9 through 12. Enter as a negative number .................................................................. 13. 14. Michigan NOL before required modifications. Combine lines 2, 8, and 13. If zero or greater, STOP; you do not have a Michigan NOL ..................................................................................................................... 14. Modifications. Complete Part 2 before continuing. 00 15. Excess nonbusiness deductions from line 29....................................................... 15. 16. Excess capital loss (see instructions). Enter as a positive number ............. 16. 00 17. Total Modifications. Add lines 15 and 16 ........................................................................................... 17. 00 00 18. Michigan NOL. Combine lines 14 and 17. If zero or greater, you do not have a Michigan NOL.................. 18. 00 PART 2: EXCESS NONBUSINESS DEDUCTIONS Michigan-sourced Nonbusiness Deductions 19. Payments to a retirement plan as an individual or self-employed person ..... 19. 20. Alimony deducted and/or penalty for early withdrawal of savings ................. 20. 21. Other adjustments to income......................................................................... 21. 22. Subtotal. Add lines 19 through 21.................................................................. 22. Michigan-sourced Nonbusiness Income 23. Interest income .............................................................................................. 23. 24. Dividend income ............................................................................................ 24. 25. Net nonbusiness capital gains (before any allowable exclusion) .................. 25. 26. Pension, IRA and annuities ........................................................................... 26. 27. Taxable alimony and other income ................................................................ 27. 28. Subtotal. Add lines 23 through 27.................................................................. 28. 29. Excess nonbusiness deductions. Subtract line 28 from line 22. If line 28 is greater than line 22, enter “0”. Enter here and carry to line 15 .................. 29. 00 00 00 00 00 00 00 00 00 00 00 00 00 2019 Schedule MI-1045, Page 2 Instructions for Michigan Net Operating Loss Schedule (Schedule MI-1045) New for 2019 Michigan Net Operating Loss Schedule (Schedule MI-1045) is used to compute the Michigan net operating loss (NOL) and is now filed with the loss year return (including e-filed returns). A completed Schedule MI-1045 for the loss year(s) is required if a taxpayer claims an NOL carryforward deduction on Form 5674. Submit a completed Schedule MI-1045 for the loss year when claiming a refund for a farming loss carryback on Form 5603. Michigan Net Operating Loss Deduction (Form 5674) is used to compute the current year Michigan NOL deduction. Form 5674 is required to claim an NOL deduction on Schedule 1. Michigan Farming Loss Carryback Refund Request (Form 5603), formerly page 2 of Form MI-1045, is used to claim a refund from a farming loss carryback. Net Operating Loss Deduction for Michigan Farmland Preservation Tax Credit, formerly page 3 of Form MI-1045, has been moved to Michigan Farmland Preservation Tax Credit Claim (Form MI-1040CR-5), Part 4. New Terminology Due to the federal 2017 Tax Cuts and Jobs Act (TCJA), limitations were imposed on NOL deductions for losses incurred in 2018 and future tax years. This created two groups of NOLs. For Michigan forms and instructions these are identified as Group 1 NOLs and Group 2 NOLs. • • Group 1 NOLs are those created in 2017 and prior. Group 2 NOLs are those created in 2018 and future tax years. These NOL deductions are limited to 80 percent of Michigan taxable income before exemptions and previously claimed NOL deductions. Federal 2017 Tax Cuts and Jobs Act The federal 2017 TCJA limits business losses that are included in adjusted gross income (AGI) beginning in tax year 2018. The limitation is computed by aggregating business income and business losses. If the computation results in a loss, the Internal Revenue Code (IRC) 461(l) limits business losses in excess of business income to $250,000 for filers who are single or married filing separately or $500,000 for joint filers. For tax years following 2018, the limits are adjusted for inflation. Losses in excess of the limitation are not included in AGI and become an NOL available to claim in the following year. Michigan taxable income may be affected for taxpayers who have a federal excess business loss and business activity outside of Michigan. As such, taxpayers subject to a federal excess business loss limitation must include Michigan Excess Business Loss (Form MI-461) with their income tax return to determine the Michigan portion of the allowed federal business loss and any resulting Michigan excess business loss NOL. The TCJA eliminates most NOL carrybacks for NOLs incurred in tax years after 2017 and allows the NOL to be carried forward indefinitely until fully absorbed. A two-year carryback is available for farming NOLs. Additionally, NOL deductions from Group 2 NOLs are limited to the lesser of total NOL carryovers or 80 percent of Michigan taxable income (before exemptions and previously claimed NOL deductions). What is a Net Operating Loss? An NOL occurs when business loss exceeds income in a particular year. In general terms, a federal NOL is computed by starting with federal taxable income and making the following modifications by eliminating: • Capital losses in excess of capital gains and any excluded capital gains. The excess capital loss deduction is calculated on a U.S. Form 1045 Schedule A, line 21 or 22. An excess capital loss includes a U.S. Form Schedule D loss that is limited to $3,000. The capital loss may be greater than $3,000 if nonbusiness capital losses were offset by business gains that are also reported on U.S. Form Schedule D. Example: U.S. Form 1045, Schedule A, line 22 computed a $15,000 excess capital loss. The $15,000 excess capital loss cannot be used to increase the NOL. • • NOL carryovers from other years Excess of nonbusiness deductions over nonbusiness income Example: $10,000 nonbusiness stock loss and $50,000 gain from the sale of a business asset (U.S. Form 4797) produce a U.S. Form Schedule D gain of $40,000. The $10,000 stock loss is nonbusiness and cannot be used to increase an NOL. If the end result is negative, a federal NOL has been created for use in another tax year. For additional information on federal NOLs, see Internal Revenue Service (IRS) Publication 536. The Michigan NOL The Michigan NOL is computed independently of the federal NOL. The calculation of a Michigan NOL follows the same general format as the federal NOL calculation but begins with federal AGI rather than federal taxable income. Therefore, federal itemized deductions that may be used to create or contribute to the federal NOL are not considered when calculating the Michigan NOL. The Michigan NOL is subject to the allocation and apportionment provisions of 2019 Schedule MI-1045, Page 3 Chapter 3 of the Income Tax Act which excludes income and loss attributable to other states. Additionally, income from the production of oil and gas and nonferrous metallic mineral extraction subject to Michigan severance tax and expenses of production are excluded. To determine whether an NOL was incurred from Michigan sources, regardless of whether or not there was a corresponding federal NOL, complete the Schedule MI-1045 for the year of the loss. The Michigan NOL may be carried over in the same manner and to the same time periods as provided for in IRC 172 in effect for the year the loss was incurred. An NOL must be claimed in consecutive years. If there is a change in filing status, Michigan follows federal regulations. Additionally, the amount of the combined Michigan NOL carryover must be reduced by any Michigan sourced excess capital loss and other modifications required under IRC 172 or elections under IRC 965 claimed in the previous carryover year. For additional information regarding NOLs, see IRS Publication 536 and Michigan Revenue Administrative Bulletin 2017-14. Nonresidents and Part-Year Residents Nonresidents and part-year residents may also be entitled to a Michigan NOL deduction. Complete Schedule MI-1045 to determine if a Michigan NOL was incurred. Only Michigan-sourced income or loss may create a Michigan NOL. In a carryforward year, enter the total amount of the federal NOL deduction included in AGI on Michigan Nonresident and Part-Year Resident Schedule (Schedule NR), line 11, column C. The deduction of a Michigan NOL created after 2017 is limited to the lesser of the NOL deduction or 80 percent of Michigan taxable income (before exemptions and previously claimed NOL deductions). The Michigan NOL deduction is computed on Form 5674 and claimed as a subtraction on the Michigan Schedule 1. NOTE: Do not report a Michigan NOL deduction on Michigan Schedule NR or claim the federal NOL deduction as an addition on Michigan Schedule 1. Amending the NOL If you file an amended MI-1040 for a loss year which changes your NOL, you must include an amended MI-1045. Provide all required supporting documentation to substantiate any changes. To amend a Group 1 NOL, use Application for Michigan Net Operating Loss Refund. If you need to amend an NOL carryforward, see the applicable year’s MI-1040 booklet on filing an amended MI-1040. Include all required documentation to substantiate any changes. An NOL must be claimed in consecutive years. It is not necessary to amend Form MI-1040 for the carryback year, see Form 5603 to claim a farming loss carryback. Statute of Limitations for NOL Refund Claims A claim for a refund based on an NOL must be filed within the four-year statute of limitations period (open tax year). If an NOL is sustained in a year that is outside the four-year statute of limitations period (closed tax year), a taxpayer may still claim the NOL deduction in open tax years. However, the election to forgo the carryback of an NOL is not allowed if the NOL was established outside the statute of limitations period. The taxpayer must calculate the amount of the Michigan NOL that would have been absorbed by Michigan taxable income (before exemptions) in the closed tax year(s) to determine the amount that can be carried forward to the first open tax year(s). Treasury may redetermine the correct taxable income (before exemptions) in a closed tax year to ascertain either the amount of an NOL or the amount of an NOL deduction absorbed in the closed tax year(s) to determine the correct NOL carryforward to the first open tax year. 2019 Schedule MI-1045, Page 4 Line-by-Line Instructions for Schedule MI-1045 Lines not listed are explained on the form. Part 1: Compute the Net Operating Loss Part 2: Excess Nonbusiness Deductions To complete Part 1, use entries from your Michigan Individual Income Tax Return (MI-1040) and Michigan Schedule 1 for the year the loss occurred. Line 12: Miscellaneous subtractions are limited to: • Losses from the disposal of property reported in the Michigan column of MI-1040D, line 13, or MI-4797, line 18b • Adjustments for out of state business activity not reported on another line of Schedule 1 or this form. Line 15: Complete Part 2 and enter amount from line 29 on this line. To complete Part 2, use the Michigan portion of entries from your U.S. Form 1040 for the year the loss occurred. Michigan follows the general NOL provisions of IRC 172 for determining nonbusiness deductions. See IRC Reg 1.172-3 for more information. Lines 19 through 21: Enter the Michigan-sourced nonbusiness deductions from U.S. Form 1040 Schedule 1, lines 10 through 21. Lines 23 through 27: Enter the Michigan-sourced nonbusiness income included in line 14. Line 16: The excess capital loss deduction must be calculated on a U.S. Form 1045 Schedule A, line 21 or 22, then entered on this line. Line 18: This is the Group 2 NOL available to claim as a carry forward to the next tax year on Form 5674 or carry back on Form 5603, if eligible. Required Supporting Documentation To help reduce processing delays, review the following to ensure all supporting documents are included when establishing an NOL. r U.S. Form 1040 r U.S. Form 1040 Schedule(s) 1, A, B, C, D, E, F r U.S. Form 4797 r U.S. Form 4835 r U.S. Form 1045 Schedule A r Schedule K-1(s) r MI-1041 and final Schedule K-1 from the U.S. Form 1041 when an NOL is created from the termination of a trust r For all business activity, provide a statement indicating the type and location (city and state) of each source of income or loss. For assistance, refer to the “Business, Rental & Royalty Activity Worksheet” available on Treasury’s Web site. r Any other applicable documentation to support the NOL.
Extracted from PDF file 2019-michigan-form-mi-1045.pdf, last modified November 2012

More about the Michigan Form MI-1045 Individual Income Tax TY 2019

Form MI-1045 requires you to list multiple forms of income, such as wages, interest, or alimony .

We last updated the Application for Michigan Net Operating Loss Refund in March 2020, so this is the latest version of Form MI-1045, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form MI-1045 directly from TaxFormFinder. You can print other Michigan tax forms here.

Other Michigan Individual Income Tax Forms:

TaxFormFinder has an additional 97 Michigan income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Schedule W Withholding Tax Schedule
Form MI-1040CR Homestead Property Tax Credit Claim
Form MI-1040CR-7 Home Heating Credit Claim
Form MI-1040 Individual Income Tax Return
Form MI-1040ES Estimated Individual Income Tax Voucher

Download all MI tax forms View all 98 Michigan Income Tax Forms


Form Sources:

Michigan usually releases forms for the current tax year between January and April. We last updated Michigan Form MI-1045 from the Department of Treasury in March 2020.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Michigan Form MI-1045

We have a total of nine past-year versions of Form MI-1045 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 Form MI-1045

2019 Application for Michigan Net Operating Loss Refund MI-1045

2018 Form MI-1045

2018 Application for Michigan Net Operating Loss Refund MI-1045

2017 Form MI-1045

2017 Application for Michigan Net Operating Loss Refund MI-1045

2016 Form MI-1045

2016 Application for Michigan Net Operating Loss Refund MI-1045

2015 Form MI-1045

2014 Application for Michigan Net Operating Loss Refund MI-1045

2014 Application for Michigan Net Operating Loss Refund MI-1045 2014 Form MI-1045

2014 Application for Michigan Net Operating Loss Refund MI-1045

2013 Application for Michigan Net Operating Loss Refund MI-1045 2013 Form MI-1045

2013 Application for Michigan Net Operating Loss Refund MI-1045

Application for Michigan Net Operating Loss Refund MI-1045 2012 Form MI-1045

Application for Michigan Net Operating Loss Refund MI-1045

MI-1045, Application for Michigan Net Operating Loss Refund (Rev. 09-11) 2011 Form MI-1045

MI-1045, Application for Michigan Net Operating Loss Refund


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