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MICHIGAN Net Operating Loss MI-1045 2018

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Michigan Department of Treasury (Rev. 11-18), Page 1 of 3
Issued under authority of Public Act 281 of 1967, as amended.
MICHIGAN Net Operating Loss MI-1045
NOTE: Use for 2018 and future years.
Type or print in blue or black ink.
Year (YYYY) Month-Year (MM-YYYY) Month-Year (MM-YYYY)
For loss year or for loss year beginning
and ending
Filer’s First Name M.I. Last Name
Filer’s Full Social Security No. (Example: 123-45-6789)
If a Joint Return, Spouse’s First Name M.I. Last Name
Spouse’s Full Social Security No. (Example: 123-45-6789)
Home Address (Number, Street, or P.O. Box)
City or Town State ZIP Code
PART 1: COMPUTE THE NET OPERATING LOSS (NOL)
1. Adjusted Gross Income (AGI). Enter the amount from MI-1040, line 10 of the loss year .................. 1. 00
Additions. Enter the corresponding amounts from Schedule 1.
2.
Gains from Michigan column of MI-1040D and MI-4797 from Schedule 1,
line 3 .............................................................................................................. 2. 00
3. Losses attributable to other states from Schedule 1, line 4 .......................... 3. 00
4.
Net loss from federal column of your Michigan MI-1040D or MI-4797 from
Schedule 1, line 5 .......................................................................................... 4. 00
5.
Oil, gas, and nonferrous metallic mineral expenses (Michigan sourced)
deducted to arrive at AGI from Schedule 1, line 6 ......................................... 5. 00
6. Federal net operating loss deduction included in AGI from Schedule 1, line 7. 6. 00
7. Total. Add lines 2 through 6 ................................................................................................................. 7. 00
Subtractions. Enter the corresponding amounts from Schedule 1.
8.
Gains from federal column of Michigan MI-1040D and MI-4797 from
Schedule 1, line 12 ..................................................................................... 8. 00
9. Income attributable to another state from Schedule 1, line 13 ..................... 9. 00
10.
Oil, gas, and nonferrous metallic minerals income (Michigan sourced)
included in AGI from Schedule 1, line 19 ........................................................ 10. 00
11. Miscellaneous subtractions from Schedule 1, line 22 (see instructions) ...... 11. 00
12. Total. Add lines 8 through 11. Enter as a negative number .................................................................. 12. 00
13. Michigan NOL before required modications. Combine lines 1, 7, and 12. If a positive number, enter “0”. 13. 00
Modications. Complete Part 2 before continuing.
14.
Excess nonbusiness deductions from line 28 ....................................................... 14. 00
15. Excess capital loss (see instructions). Enter as a positive number ............. 15. 00
16. Total Modications. Add lines 14 and 15 ........................................................................................... 16. 00
17.
Michigan NOL. Combine lines 13 and 16. If zero or greater, STOP; you do not have a Michigan NOL ....... 17. 00
PART 2: EXCESS NONBUSINESS DEDUCTIONS
Michigan-sourced Nonbusiness Deductions
18. Payments to a retirement plan as an individual or self-employed person ..... 18. 00
19. Alimony deducted and/or penalty for early withdrawal of savings ................. 19. 00
20. Other adjustments to income......................................................................... 20. 00
21. Subtotal. Add lines 18 through 20.................................................................. 21. 00
Michigan-sourced Nonbusiness Income
22. Interest income .............................................................................................. 22. 00
23. Dividend income ............................................................................................ 23. 00
24. Net nonbusiness capital gains (before any allowable exclusion) .................. 24. 00
25. Pension, IRA and annuities ........................................................................... 25. 00
26. Taxable alimony and other income ................................................................ 26. 00
27. Subtotal. Add lines 22 through 26.................................................................. 27. 00
28.
Excess nonbusiness deductions. Subtract line 27 from line 21. If less
than zero, enter “0”. Enter here and carry to line 14...................................... 28. 00
+ 0000 2018 73 01 27 0 To carry back a farming loss continue to page 2.
Reset Form
2018 MI-1045, Page 2 of 3
Filer’s Full Social Security Number
Michigan Farming Net Operating Loss Carryback. Enter all numbers as positive numbers on this page except when instructed otherwise.
PART 3: DETERMINE FARMING LOSS AVAILABLE FOR CARRYBACK
29. Michigan NOL from line 17 ................................................................................................................... 29. 00
30. Farming loss included in line 29 ........................................................................................................... 30. 00
31. Enter the lesser of line 29 or line 30 ..................................................................................................... 31. 00
PART 4: REDETERMINE MICHIGAN INCOME TAX.
If only one carryback year, use column A. Complete lines 32 through 56 one column at a time.
A. Earliest Year B. Following Year
32. Year to which farming loss is being carried back ......................................................
33. Reported federal AGI for the year indicated on line 32............................................. 00 00
34. Additions from Michigan Schedule 1 ....................................................................... 00 00
35. Subtotal. Add lines 33 and 34 .................................................................................. 00 00
36. Subtractions from Michigan Schedule 1 .................................................................. 00 00
37. Income subject to tax from MI-1040 line 14.............................................................. 00 00
38.
NOL deduction.
00A. Earliest Year. Enter the lesser of line 31 or 80% of line 37, column A ..................
B. Following Year. Enter the lesser of line 56, column A or 80% of line 37, column B. 00
39. Balance. Subtract line 38 from line 37........................................... ........................... 00 00
40. Michigan exemption allowance................................................................................. 00 00
41. Taxable income. Subtract line 40 from line 39. If less than zero, enter “0” ............... 00 00
42. Tax. Multiply line 41 by tax rate of carryback year. ................................................. 00 00
43. Nonrefundable tax credits......................................................................................... 00 00
44. Tax due. Subtract line 43 from line 42. If less than zero, enter “0” ........................... 00 00
45. Refundable credits.................................................................................................... 00 00
46. Tax withheld ............................................................................................................. 00 00
47. Tax paid with prior returns ........................................................................................ 00 00
48. Estimated tax payments .......................................................................................... 00 00
49. Total. Add lines 45 through 48 .................................................................................. 00 00
50. Tax previously refunded or carried to next year........................................................ 00 00
51. Balance of tax paid. Subtract line 50 from line 49. If less than zero, enter “0” ......... 00 00
52. Overpayment. Subtract line 44 from line 51 ........................................... REFUND 00 00
PART 5: COMPUTE THE NOL CARRYOVER.
Section A: Carryover from Earliest Year
53.
A. Enter the unused farming carryback. Subtract line 38 from line 31 ........................ 00
B. Remaining farming NOL before modications. Subtract line 38 from line 56, column A 00
54. Excess capital loss deduction included on line 37....................................................
00
00
55. Domestic production activities deduction (DPAD) included on line 37 ..................
00
00
56.
Tentative NOL carryover for following year. Subtract lines 54 and 55 from line 53.
If less than zero, enter “0”. See instructions ............................................................
00
00
Section B: Carryforward to the Year(s) After the Loss Year
57. Non-farming NOL. Subtract line 30 from line 29. If less than zero, enter “0”............................................ 57. 00
58.
Farming NOL carryforward. Enter amount from line 56, Column B. If only one carryback year, enter
amount from line 56, column A ................................................................................................................. 58. 00
59. NOL carryforward. Add lines 57 and 58 .................................................................................................... 59. 00
Taxpayer Certication. I declare under penalty of perjury that the information in this
return and attachments is true and complete to the best of my knowledge.
Preparer Certication. I declare under penalty of perjury that this
return is based on all information of which I have any knowledge.
Filer’s Signature Date Preparer’s PTIN, FEIN or SSN
Spouse’s Signature Date Preparer’s Name (print or type)
Preparer’s Business Name, Address and Telephone Number
By checking this box, I authorize Treasury to discuss my return with my preparer.
Mail your completed form to:
Michigan Department of Treasury,
Lansing, MI 48956
+ 0000 2018 73 02 27 8
2018 MI-1045, Page 3 of 3
Filer’s Full Social Security Number
Net Operating Loss Deduction for Michigan Farmland Preservation Tax Credit Only
INSTRUCTIONS: This page is used to compute the allowable NOL deduction when determining eligibility for a Farmland Preservation
Tax Credit in a carryover year. If only one carryback year or the loss is being carried forward, use column A. An NOL deduction allowed
in household income cannot exceed Federal Modied Taxable Income (FMTI). If you do not have a Michigan NOL and are claiming
a Farmland Preservation Tax Credit (MI-1040CR-5) with a federal NOL, complete and submit this page only.
PART 6: COMPUTE THE LESSER OF FEDERAL NOL DEDUCTION OR FMTI
A. Earliest Year B. Following Year
60.
Year to which NOL is being carried ...........................................................................
61.
Federal NOL deduction. Enter as a positive number. ................................................
00 00
62.
Reported AGI for year shown above without current NOL deduction ........................
00 00
63.
a. Adjustments to AGI including DPAD (see instructions) .......................................
00 00
b. Capital losses in excess of capital gains ($3,000 maximum) .............................
00 00
64.
MODIFIED federal AGI. Add lines 62, 63a and 63b ..................................................
00 00
65.
a. Medical (see instructions for limitations).............................................................
00 00
b. Taxes ..................................................................................................................
00 00
c. Contributions.......................................................................................................
00 00
d. Interest................................................................................................................
00 00
e. Casualty Loss ....................................................................................................
00 00
f. Miscellaneous (include U.S. Schedule A)(see instructions) ...............................
00 00
g. Limit on itemized deductions ..............................................................................
00 00
h. If you did not itemize, use the standard deduction .............................................
00 00
66.
Enter the total of 65a through 65g, or 65h if you did not itemize ...............................
00 00
67.
FMTI. Subtract line 66 from line 64. If less than zero, enter “0” ................................
00 00
68. Enter the lesser of line 61 or line 67. Enter here and carry to MI-1040CR-5, line 25 00 00
+ 0000 2018 73 03 27 6
Instructions for Form MI-1045, MICHIGAN Net Operating Loss
2018 MI-1045, Page 4
New for 2018
Federal 2017 Tax Cuts and Jobs Act
The federal 2017 Tax Cuts and Jobs Act (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 lers who are single or married ling separately
or $500,000 for joint lers. Losses in excess of the $250,000 or
$500,000 limitation become a net operating loss (NOL), which
is available to claim in the following tax year.
Michigan taxable income may be aected 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 indenitely until fully absorbed. A two-year carryback
is available for farming NOLs. Additionally, NOL deductions
from NOLs incurred after tax year 2017 are limited to the
lesser of total NOL carryovers or 80 percent of taxable income
(computed without the NOL deduction).
Revision of Form MI-1045
The Form MI-1045 was signicantly revised for 2018 and future
years. The new form is designed to compute the Michigan
NOL by starting with AGI and making specic adjustments
that are already reported on Michigan Schedule 1 Additions
and Subtractions. Do not use the new Michigan Net Operating
Loss Form MI-1045 (this form) to compute NOLs incurred in
years before 2018. For NOLs incurred in years prior to 2018
use Application for Michigan Net Operating Loss Refund Form
MI-1045 (old form).
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
modications by eliminating:
• Personal exemption allowance
• Capital losses in excess of capital gains and any excluded
capital gains
• NOL carryovers from other years
• Excess of nonbusiness deductions over nonbusiness income
If the end result is negative, a federal NOL has been created
for use in another tax year. 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 oset by business gains that are
also reported on U.S. Form Schedule D.
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 an excess capital loss and cannot be used to increase an NOL.
The Michigan NOL
To determine whether an NOL was incurred from Michigan
sources, regardless of whether or not there was a corresponding
federal NOL, complete Form MI-1045:
• Page 1 of Form MI-1045 is used to compute the Michigan
NOL for the year of the loss.
• Page 2 is used to compute a refund from a farming NOL
carryback and to determine the amount of the remaining
carryforward, if applicable.
• Page 3 is used to compute the federal NOL deduction for
the Michigan farmland preservation tax credit only.
The Michigan NOL is computed independently of the federal
NOL. The calculation of a Michigan NOL (for taxable income
purposes) 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 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 also excluded.
See Revenue Administrative Bulletin 2017-14 for additional
guidance.
Statute of Limitations for NOL Refund Claims
A claim for refund based on an NOL must be led within the
four-year statute of limitations period. If an NOL is determined
to have been sustained in a year that is outside the four-year
statute of limitations period, a taxpayer may still claim the NOL
deduction for the open tax years. However, the taxpayer must
calculate the amount of the Michigan NOL that would have
been absorbed by Michigan income subject to tax in the closed
tax year(s) to determine the amount that can be carried forward
to the open year(s). The Michigan Department of Treasury may
redetermine the correct taxable income in a closed tax year in
order to ascertain either the amount of an NOL or the amount
of an NOL that is absorbed in the closed tax year in order to
determine the correct NOL deduction for an open tax year.
Carryover of a Michigan NOL
The Michigan NOL may be carried over in the same manner
and to the same time periods as provided for in IRC 172 in eect
for the year the loss was incurred. The amount of the Michigan
NOL used in carryover years must be reduced by any Michigan
sourced excess capital loss, domestic production activity
deduction (DPAD) and other modications required under
IRC 172 or elections under IRC 965 claimed in the previous
carryover year.
For example, if excess capital loss and DPAD were in your 2017
AGI, your NOL carryforward claimed in 2018 must be reduced
to the extent the deductions reduced Michigan taxable income.
The amount of the available NOL deduction for a year is
equal to the sum of all NOL carryforwards and carrybacks
for the taxable year. A copy of the U.S. Form 1040 and all
supporting federal tax schedules and statements for the loss
year(s) that substantiate the NOL (see “Required Supporting
Documentation” on page 6) must be included with Form
MI-1045. If a carryover remains, this documentation must be
submitted for every year the NOL deduction is claimed. For
assistance in computing the Michigan NOL carryover, see
“Michigan NOL Carryover Worksheet” available on Treasury’s
Web site. It is not necessary to amend an MI-1040 return
to claim a refund of an NOL carryback. However, the
appropriate MI-1045 must be led, depending on the year the
loss was created.
When there is a change in ling status, Michigan follows
federal regulations. For additional information, see Internal
Revenue Service (IRS) Publication 536.
Carryover of NOLs Created in 2018 and Later
Carryback
The federal 2017 TCJA limits the carryback of an NOL to only
the portion of the NOL that is attributable to a farming loss
from a farming business. A carryback of a non-farming NOL
created after 2017 is not allowed. The term “farming business”
is dened in IRC 263A. Farming loss, as dened in IRC 172,
means the lesser of: the amount which would be the NOL for
the taxable year if only income and deductions attributable to
a farming business is considered or the amount of the NOL for
such taxable year. Generally, the farming NOL carryback is
limited to the two taxable years preceding the year of the loss.
The farming carryback is subject to the 80 percent limitation.
Any unused loss may be carried forward indenitely until the
loss is absorbed.
When carrying back a Michigan farming NOL to prior
years, Form MI-1045 and supporting documentation must
be led within four years after the date set for ling the
return for the year in which the NOL was incurred. For
example, if the original NOL is incurred in 2018, the
original 2018 return is due April 15, 2019. Form MI-1045 must
be led by April 15, 2023 to carry back the 2018 Michigan
farming NOL to a year that is otherwise outside the general
four-year statute of limitations period to claim a refund. If
Form MI-1045 is led after the four-year statutory period has
expired, no refund is allowed for the carryback year. However,
after absorbing the farming NOL in those carryback periods,
a carryforward may still exist to oset income in subsequent
years.
Carryforward
An NOL created in 2018 and future years can be carried
forward indenitely following the loss year. The Michigan
NOL carryforward is limited to the lesser of the Michigan NOL
deduction or 80 percent of Michigan taxable income before
exemptions and any NOL deduction. To claim a carryforward,
include a copy of Form MI-1045 and required supporting
documentation (see page 6) for the loss year(s) with each
Form MI-1040 that claims an NOL deduction until that loss is
absorbed. The NOL carryforward must be used in consecutive
years. A schedule demonstrating how the Michigan NOL
was absorbed must be included. For assistance, refer to the
“Michigan NOL Carryover Worksheet” available on Treasury’s
Web site. Any federal NOL deduction included in AGI must be
added back on the Michigan Schedule 1. The Michigan NOL
deduction is entered as a subtraction on the Michigan Schedule 1.
If there are Michigan NOLs from multiple tax years, the total
unused NOLs must be combined. Keep all records for the loss
year(s) until the NOL has been absorbed.
Carryover of NOLs Created Prior to 2018
Carryback
Use the old form, Application for a Michigan Net Operating
Loss Refund Form MI-1045, to claim a refund from a carryback
from an NOL created prior to 2018.
Carryforward
The carryforward period is limited to 20 consecutive years
following the loss year for both federal and Michigan taxes. To
claim a carryforward, include a copy of the old Form MI-1045
and required supporting documentation (see page 6) for the loss
year(s) with each Form MI-1040 that claims an NOL deduction
until that loss is absorbed or expired. The NOL carryforward
must be used in consecutive years. A schedule demonstrating
how the Michigan NOL was absorbed must be included.
Any federal NOL deduction included in AGI must be added
back on the Michigan Schedule 1. The Michigan NOL deduction
is entered as a subtraction on the Michigan Schedule 1. If there
are Michigan NOLs from multiple tax years, the total unused
NOLs must be combined. Keep all records for the loss year(s)
until the NOL has been absorbed or the carryforward
period expired.
Farmland Preservation Tax Credit
The farmland preservation tax credit is computed using
household income which allows for an NOL, instead of total
household resources which does not allow for an NOL.
The NOL deduction allowed in household income is the lesser
of the federal NOL deduction or Federal Modied Taxable
Income (FMTI) in the year to which it is being carried back or
carried forward as dened in IRC 172(b)(2). FMTI is computed
by modifying federal taxable income. Some of the adjustments
include removal of the federal exemption allowance, the capital
loss deduction, DPAD and other required modications, the
NOL deduction, and recalculation of taxable social security and
itemized deductions. For more information about FMTI, see
IRS Publication 536.
When ling a refund claim due to the carryback of a federal
NOL for the farmland preservation tax credit, prepare an
amended Form MI-1040CR-5 for each year the loss is being
carried back and include with Form MI-1045. The amount of
the NOL deduction available for use in household income is
calculated on page 3 of Form MI-1045 for both carrybacks
and carryforwards. If you do not have a Michigan NOL and
are claiming a farmland preservation tax credit with a federal
NOL, complete page 3 only. The amount of the carryback or
2018 MI-1045, Page 5
2018 MI-1045, Page 6
LINE-BY-LINE INSTRUCTIONS
Required Supporting Documentation
Include a copy of the federal income tax return with applicable
schedules and statements that substantiate the Michigan NOL:
• U.S. Form 1040
• U.S. Form 1040 Schedule 1
• U.S. Form 1040 Schedule(s) A, B, C, D, E, F
• U.S. Form 4797
• U.S. Form 4835
• U.S. Form 1045 Schedule A
• Schedule K-1(s)
• MI-1041 and nal Schedule K-1 from the U.S. Form 1041
when an NOL is created from the termination of a trust
• Any other applicable documentation
Provide a statement indicating the business activity and location
(city and state) of each source of income or loss. For assistance,
refer to the “Business, Rental & Royalty Activity Worksheet”
and its instructions available on Treasury’s Web site. If there is
income or loss subject to apportionment, include a Schedule of
Apportionment (Form MI-1040H).
Amending the NOL
If you le an amended MI-1040 for a loss year which changes
your NOL, you must le an amended MI-1045. Write
“Amended” across the top and provide all required supporting
documentation to substantiate any changes. It is not necessary
to amend Form MI-1040 for the carryback year. To amend an
NOL created prior to 2018, use Application for Michigan Net
Operating Loss Refund.
carryforward deduction is the lesser of lines 61 or 67. Claim
the amount of the allowed NOL deduction on the “federal net
operating loss deduction” line on Form MI-1040CR-5 for each
applicable year. There must be a federal NOL deduction in
AGI in order to claim an NOL deduction in household income.
Provide the supporting documentation with the amended MI-
1040CR-5.
Example: Your 2016 FMTI is $20,000, and your 2016 federal
NOL deduction is $50,000. The amount of the 2016 NOL
deduction of $50,000 that may be used in 2016 household
income for a farmland preservation tax credit is limited to
$20,000.
Nonresidents and Part-Year Residents
Nonresidents and part-year residents may also be entitled
to a Michigan NOL deduction. Complete Part 1 of Form
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, include the total amount of the federal
NOL deduction used to arrive at federal AGI on Michigan
Schedule NR, line 11, Column C. The Michigan NOL deduction
is claimed on the Michigan Schedule 1 as a subtraction. The
deduction of a Michigan NOL created after 2017 is limited to
the lesser of the NOL deduction or 80 percent of taxable income.
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.
Lines not listed are explained on the form.
Part 1: Compute the Net Operating Loss
To complete Part 1, use entries on your Michigan Individual
Income Tax Return (MI-1040) and Michigan Schedule 1 for the
year the loss occurred.
Line 11: 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(2)
• Adjustments for out of state business activity not reported on
another line of Schedule 1 or this form.
Line 14: Complete Part 2 and enter amount from line 28 on this
line.
Line 15: 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. An excess capital loss includes a U.S. Schedule D loss
that is limited to $3,000. The capital loss may be greater than
$3,000 if non-business capital losses were oset by business
gains that are also reported on U.S. Schedule D.
Part 2: Excess Nonbusiness Deductions
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 1.172-3 for more information.
Lines 18 through 20: Enter the Michigan-sourced nonbusiness
deductions from U.S. Form 1040 Schedule 1, lines 23 through 35.
Lines 22 through 26: Enter the Michigan-sourced nonbusiness
income included in line 13.
Part 4: Redetermine Michigan Income Tax
Line 34: Enter Michigan Schedule 1 Additions from the year
indicated on line 32.
Line 36: Enter Michigan Schedule 1 Subtractions from the year
indicated on line 32.
Line 37: If less than zero, enter zero and STOP. You cannot apply
an NOL carryback to a year that has no income subject to tax.
Line 38, column A: Multiply line 37, column A by 80%. Enter
the lesser of line 31 or 80% of line 37, column A.
Line 38, column B: Multiply line 37, column B by 80%. Enter
the lesser of line 56, column A or 80% of line 37, column B.
Line 43: For the year listed on line 32, enter the total of
nonrefundable credits for Income Tax Imposed by government
units outside Michigan, Michigan Historic Preservation Tax
Credit carryforward and Small Business Investment Tax Credit.
Line 44: After determining the tax due, add any Voluntary
Contributions and Use Tax reported on the MI-1040 for the year
listed on line 32, if applicable.
Line 45: For the year listed on line 32, enter the total of
refundable credits for homestead property tax, farmland
preservation tax and any other refundable credits claimed for the
tax year.
2018 MI-1045, Page 7
Line 47: For the year listed on line 32, enter the total tax paid
with Form MI-1040 plus any additional tax paid after the original
return was led. Do not include penalty or interest that was
reported on the return or included with any payment(s).
Part 5: Compute the NOL Carryover
Lines 54 and 55: Remove the excess capital loss and DPAD from
the amount of the NOL available to be carried forward to the next
year.
Line 56, column A: If the result is less than zero enter “0” or if
carrying back to only one year, continue to Section B to compute
a tentative NOL carryforward. If the result is greater than zero
and applying the NOL to another carryback year, continue to
Part 4, column B.
Line 56, column B: Continue to section B to compute a tentative
NOL carryforward.
Part 6: Compute the Lesser of Federal NOL
Deduction or FMTI
Part 6 must be completed if an NOL deduction will be used in the
calculation of a farmland preservation tax credit.
Line 62: Do not include the current NOL deduction, however
you must include all NOL carryovers reported in AGI from prior
years, for the year listed on line 60.
Line 63a: Adjustments to AGI for taxable Social Security
benets and IRA deductions must be recalculated based on
modied federal AGI. Add back any DPAD, if applicable.
Lines 65a through 65h: If itemized deductions were claimed on
U.S. Form 1040 Schedule A enter on lines 65a through 65g. If not,
enter the standard deduction on line 65h.
Line 65a: Medical deduction adjustments. Recalculate your
medical expense deduction based on modied federal AGI and
the federal limitation in eect for the year entered on line 60.
Line 65c: Recalculate your charitable contributions based on
modied federal AGI using the applicable percentage limitation
for the year entered on line 60.
Line 65f: Recalculate the miscellaneous deductions based on
modied federal AGI that are subject to the 2 percent limitation.
For tax years after 2017 miscellaneous deductions are no
longer available. However, use this line to claim other itemized
deductions reported on U.S. Schedule A.
Line 65g: If modied federal AGI exceeds certain amounts,
itemized deductions may be limited. See limitations in eect for
the year entered on line 60. This only applies to tax years prior to
2018.
Line 67: This is your FMTI. This amount cannot be less than
zero.
Line 68: The NOL deduction available to claim on the
MI-1040CR-5, line 25 is the lesser of line 61 or line 67.
Forms or Questions
Michigan tax forms are available at www.michigan.gov/taxes.
Call 517-636-4486 if you have questions or to request tax forms.
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MICHIGAN Net Operating Loss MI-1045 2018

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Completed 16 May 2020

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