4579: Qualified Affordable Housing Seller's Deduction (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4579 calculates the Qualified Affordable Housing Seller’s Deduction for the 2025 Michigan Business Tax. It reports seller and buyer information, property details, and the deduction based on the seller’s gain and the share of rental units the buyer committed to opera
Who files this form
Form 4579 is for a seller claiming the 2025 Michigan Business Tax Qualified Affordable Housing Seller’s Deduction. The seller must obtain the buyer’s signature and attach this form and a copy of the buyer’s operation agreement to the seller’s MBT Annual Return, Form 4567.
What you'll need
Have these documents and details ready:
- The buyer’s operation agreement. A copy must be attached with Form 4579 to the seller’s Form 4567.
- The seller’s federal tax return for the period, showing the gain from the sale.
- Seller and buyer names and FEIN or TR numbers. Unitary business groups also provide the designated member’s name and the reporting member’s name and identification number.
- The property’s address and property tax parcel identification number.
- The total number of residential rental units and the number the buyer committed to operate as rent-restricted units in the operation agreement.
- For the first year of an installment sale, the total gain over the life of the installment note.
- Authorized seller and buyer signatures, printed names, dates, titles, and telephone numbers.
How to file
Complete the seller, buyer, and property information, then calculate the deduction in Part 3:
- Enter the gain reported on the seller’s federal tax return for this period on line 1.
- Enter the committed rent-restricted rental units on line 2 and total residential rental units on line 3.
- Divide line 2 by line 3 and enter the percentage on line 4.
- Multiply line 1 by line 4 to get the deduction on line 5. Carry it to Form 4567, line 48i. The form directs unitary business groups to see instructions, which are not included in the supplied text.
Complete Part 4 only for the first year of an installment sale. Complete the seller and buyer certifications and obtain both authorized signatures.
Attach Form 4579 and a copy of the buyer’s operation agreement to the seller’s Form 4567. The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Missing the buyer’s signature: The form specifically requires the seller to obtain it.
- Leaving out required attachments: Attach both Form 4579 and a copy of the buyer’s operation agreement to the seller’s Form 4567.
- Completing Part 4 in the wrong year: Complete the installment-sale lien calculation only in the first year of an installment sale.
Questions people ask
How is the seller’s deduction calculated?
Multiply the gain reported on the seller’s federal tax return for the period by the percentage of residential rental units the buyer committed to operate as rent-restricted units in the operation agreement.
What extra calculation is needed for an installment sale?
In the first year only, complete Part 4. Enter the total gain over the life of the installment note on line 6, then multiply it by the percentage on line 4 to calculate line 7.
Will Treasury place a lien on the property?
The buyer certification states that Treasury will record a lien promptly after receiving the form. The lien is for the amount on line 5 or line 7, whichever applies, and will be maintained for 15 years to secure payment if recapture occurs.
What happens if the buyer does not meet the operation agreement requirements?
If the buyer fails to qualify and operate as provided in the operation agreement within 15 years after purchase, the buyer must report the deductible amount of the seller’s gain as recaptured tax liability, proportionately reduced with the passage of time.