Mi14. Will charitable trusts be subject to the MBT?

Generally, no. A charitable trust that is exempt from federal income tax under section 501(a) of the Internal Revenue Code would be exempt from MBT under section 207(1)(b) of the MBT act (MCL 208.1207(1)(b)). However, any unrelated business income of the trust that is subject to federal income tax under the Internal Revenue Code would also be subject to MBT if the applicable filing thresholds and nexus standards are met.