Skip Navigation
Michigan, Official Portal for the State of Michigan Home
close print view
  Michigan Business Tax
B28. Is the gain recognized on the one time sale of business assets and goodwill by an entity to another entity taxed under the Michigan Business Tax (MBT)?
Yes, the gain is taxed under the MBT. [The MBT does not provide an exception for non-corporate taxpayers for a casual transaction that was provided for under the SBTA.] To the extent the capital gain is derived from the business activity of the taxpayer and included in federal taxable income it must also be included in the business income tax base. The gain included in federal taxable income is also included in the modified gross receipts tax base. There are no statutory exceptions or exclusions that are applicable to capital gains recognized by a business from the sale of capital assets. As a result, these gains are included in gross receipts and the modified gross receipts tax base. Also see FAQs B4 and M10.

Michigan Business One Stop
Link to Department and Agencies Web Site Index
Link to Statewide Online Services Index
Link to Statewide Web-based Surveys
Link to RSS feeds available on this site
FAQ Categories
 •  Index of Tax FAQ's
 •  Individual Income Tax
 •  Business Taxes
 •  1099-MISC Filing Requirements
 •  Collections/Delinquent Accounts
 •  Tax Increment Financing
 •  Service Fee/PILOT Housing
 •  State Real Estate Transfer Tax
 •  Native American
 •  Michigan Business Tax
 •  Status of Individual Refund
 •  Health Insurance Claims Assessment (HICA) Act
 •  Energy Home Improvement Credit
 •  Corporate Income Tax
QR code Home
PoliciesMichigan Survey

Copyright © 2014 State of Michigan