For an individual, the sale of stock in a corporation will generally not constitute business income or gross receipts to that individual so long as the investment does not constitute nor is part of the individual's trade or business. The sale of stock would generally be included in a taxpayer's business income and modified gross receipts tax bases; however, there are specific exceptions. MCL 208.1105(2)(e)(i) provides that for an individual or estate, or a partnership or trust organized exclusively for estate or gift planning purposes, income from personal investment activity is not included in business income. Therefore, to the extent that the stockholder is an individual and that the sale of the stock is a personal investment activity that does not constitute nor is part of the individual's trade or business, then the sale of the stock is not included as business income subject to MBT.

A comparable but not exactly similar provision exists regarding the modified gross receipts tax base. That statutory provision addresses a broader category of entities, which also includes individuals, for which receipts relating to investment activity unrelated to a trade or business are excluded from gross receipts. For an individual or estate, or person organized (exclusively or non-exclusively) for estate or gift planning purposes, proceeds from personal investment activity that does not constitute a trade or business are not included in the gross receipts tax base subject to MBT. MCL 208.1111(1)(w). Therefore, if the stockholder is an individual and the sale of stock does not constitute nor is part of a trade or business, the amount received by the individual stockholder taxpayer for the sale of the stock would not be included in the modified gross receipts tax base.