Should I file an Individual Income Tax return (MI-1040) or a Michigan Business Tax return (Form 4594) to claim my Farmland Preservation Tax Credit?

The following should file an Individual Income Tax return (MI-1040) with a MI-1040-CR5:

  • You own your farm independently.

  • You are in possession under a life estate with remainder to another person.

  • Representative of a deceased single person.Include property taxes and income prorated from January 1 to the date of death.

  • Partnerships.

  • Joint owners.

  • Limited Liability Companies.

  • S Corporation shareholders, except shareholders of S corporations who had an FDRA before January 1, 1989 and in 1991 elected to file under the Single Business Tax (SBT) Act on C-8022.

  • Grantor Trusts (if treated as an owner under the Internal Revenue Code (IRC) Sections 671 through 679).

  • Trusts created by the death of a spouse if the trust requires 100 percent of the income from the trust to be distributed each year to the surviving spouse.

The following should file a Michigan Business Tax return (Form 4567) with a Farmland Preservation Tax Credit (Form 4594):

  • Estates, including property taxes prorated from the date of death to December 31, and farm income required to be reported on the entity’s U.S. Form 1041.

  • Corporations other than S corporations.

  • S corporations that had an FDRA before January 1, 1989, and in 1991 elected to file C-8022.

  • Trusts, except as noted previously.