Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
What does the fiduciary need to provide to the beneficiary?
The fiduciary must provide a federal Schedule K-1 (U.S. Form 1041) to each beneficiary. The fiduciary must also provide notice of Michigan adjustments to each beneficiary. The notice may be noted on a copy of the federal Schedule K-1 (U.S. Form 1041) or a separate letter to each beneficiary. If a letter is used, it must include the name and federal identification number of the estate or trust.
Each beneficiary must be advised of his or her share of the following:
- Michigan adjustments from resident estates or trusts.
- Michigan income from nonresident estates or trusts.
- Capital gains/losses available for adjustment under Section 271 of the Michigan Income Tax Act.