5327: City of Detroit Business Income Apportionment Schedule (2025)
Michigan · Michigan Treasury · Used for tax years 2025
The 2025 City of Detroit Business Income Apportionment Schedule calculates the Detroit share of business income using property, employee compensation, and gross receipts. It applies that share to net profit or loss and accounts for applicable deductions to calculate an amount for
Who files this form
Complete the 2025 Michigan Form 5327 if either applies:
- You have income from more than one business to apportion on Form 5119.
- You are filing Form 5120 and have business activity both inside and outside the City of Detroit while a nonresident.
Do not file Form 5327. Keep a copy for your records.
What you'll need
Have the following information available to complete the schedule:
- Your name and full Social Security number, plus your spouse’s name and full Social Security number if filing a joint return.
- The business entity’s name and Federal Employer Identification Number (FEIN).
- Property values, gross annual real property rent, employee compensation, and gross receipts from sales or services, for both everywhere and Detroit.
- Your U.S. Schedule C or Schedule F net profit or loss.
- The applicable portions of any net operating loss carryover and self-employment retirement deduction.
- Form 5119 or Form 5120, as applicable, to enter the calculated amounts.
How to file
Do not file Form 5327. Retain a copy for your records. Type or print in blue or black ink.
Use the result on line 19 as follows:
- Form 5119: Add line 19 from all Forms 5327 to Form 5119, line 47. Enter the total on Form 5119, line 10.
- Form 5120: Add line 19 from all Forms 5327. Enter the total on Form 5120, line 14, Column B.
Common mistakes
- Filing the schedule instead of keeping it: The form specifically says not to file it. Retain a copy for your records.
Questions people ask
What does the Detroit percentage compare?
Column A is for amounts located everywhere, and Column B is for amounts located in Detroit. Column C is the percentage found by dividing Column B by Column A.
How is rented real property included?
Enter gross annual rent paid for real property multiplied by 8 on line 8. Add lines 7 and 8 to calculate the property amounts used on line 9.
Do I always divide by three to calculate the average on line 13?
No. Normally, divide line 12 by 3. If any of the factors on lines 9, 10, or 11 are not used anywhere, divide by the number of factors actually used. If all business was conducted in Detroit, enter 100%.
Where does the business profit or loss come from?
Line 14 uses the net profit or loss from U.S. Schedule C or Schedule F. Multiply that amount by line 13 to calculate line 15, then subtract the applicable net operating loss carryover and self-employment retirement deduction to calculate line 19.