To determine the amount of the flow-through entity's Michigan sales that will be added to the numerator of the taxpayer's apportionment factor, start with the entire amount of the flow-through entity's Michigan sales and then subtract from that amount any Michigan sales eliminations, (Michigan sales the flow-through entity made to the taxpayer and Michigan sales made to another flow-through entity unitary with the taxpayer). Multiply the remaining Michigan sales by the taxpayer's percentage of ownership of that flow-through entity. Include this amount in the numerator of the taxpayer's apportionment factor. This is shown in the equation below:
Michigan sales to be included = (FTE's MI sales — eliminations) x ownership percentage
To determine the amount of the flow-through entity's total sales to be added to the denominator of the taxpayer's apportionment factor, start with the entire amount of the flow-through entity's total sales and then subtract from that amount sales eliminations, (total sales the flow-through entity made to the taxpayer and total sales made to another flow-through entity unitary with the taxpayer). Multiply the remaining total sales by the taxpayer's percentage of ownership of that flow-through entity. Include this amount in the denominator of the taxpayer's apportionment factor. This is shown in the equation below:
Total sales to be added = (FTE's total sales — eliminations) x ownership percentage
