When do I need to file a MI-1040D, Adjustment of Capital Gains and Losses?
The MI-1040D is filed only when there is a difference between your federal capital gains/losses and Michigan capital gains/losses. A difference will only occur for one of the following reasons:
- Sale of an asset that was acquired before October 1, 1967, the date the Michigan Income Tax Act went into effect. The gain attributable to the period before October 1, 1967 is not subject to Michigan income tax.
- The gain from U.S. obligations. Gains/losses from the sale of U.S. obligations are not subject to Michigan income tax.
- Gains or losses from the sale of property subject to the allocation or apportionment provisions, e.g. sale of real property located in the state of Iowa. Gains/losses from the sale of real property is taxable in the state in which the property is located.