• Michigan K-1 with loss on estate sale - non-resident

    From ""Retired"@home.com@21:1/5 to All on Mon Jan 17 15:45:04 2022
    As part of the final settlement of my mother's estate, I received an
    MI-1041 Sch K-1 showing a long-term capital LOSS on the last piece of
    property she owned.

    Since I have absolutely no Michigan based income, do I still have to
    file a Michigan Non-Resident return ?

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  • From ira smilovitz@21:1/5 to ""Re...@home.com on Mon Jan 17 21:09:05 2022
    On Monday, January 17, 2022 at 3:47:18 PM UTC-5, "\"Re...@home.com wrote:
    As part of the final settlement of my mother's estate, I received an
    MI-1041 Sch K-1 showing a long-term capital LOSS on the last piece of property she owned.

    Since I have absolutely no Michigan based income, do I still have to
    file a Michigan Non-Resident return ?

    --

    You do have MI-based "income" - the loss on the sale of real property located in MI. Whether MI will care if you don't file a return documenting the loss, I can't answer as I've never prepared a MI return. The instructions should ex[lain whether a return
    is required.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From ""Retired"@home.com@21:1/5 to ira smilovitz on Fri Jan 21 12:47:43 2022
    On 1/17/22 9:09 PM, ira smilovitz wrote:
    On Monday, January 17, 2022 at 3:47:18 PM UTC-5, "\"Re...@home.com wrote:
    As part of the final settlement of my mother's estate, I received an
    MI-1041 Sch K-1 showing a long-term capital LOSS on the last piece of
    property she owned.

    Since I have absolutely no Michigan based income, do I still have to
    file a Michigan Non-Resident return ?

    --
    You do have MI-based "income" - the loss on the sale of real property located in MI. Whether MI will care if you don't file a return documenting the loss, I can't answer as I've never prepared a MI return. The instructions should ex[lain whether a
    return is required.

    Ira Smilovitz, EA
    Leonia, NJ

    FWIW, this is response from MI Tax Advocate re "Loss but no income" as non-resident. Reading their 1040 NR instructions shed no light on the issue.

    There will be no carryover.

    "Good morning,

    Non-residents of Michigan only need to file a Michigan Individual Income
    Tax Return if your Michigan income exceeds your prorated exemption
    allowance, or if there was tax withheld or estimates paid, and you want
    to request a refund of all or part of those payments.

    Since you have no other Michigan source income, you do not need to file
    a return to report the loss to Michigan. However, if you will have
    future Michigan source income that may be impacted by any available carryforward of the loss, you may want to file an informational return
    so that the loss is properly reported.

    If you have additional questions or concerns, please let us know.

    Renee

    Taxpayer Advocate Section

    Office of Advocacy Services

    Michigan Department of Treasury"

    TaxpayerAdvocate@michigan.gov <mailto:TaxpayerAdvocate@michigan.gov>

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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