5889: Report of Oil, Gas and Nonferrous Metallic Minerals Extraction - Income and Expenses (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 5889 reports income and expenses related to Michigan oil, gas, and nonferrous metallic minerals extraction. The totals carry to Michigan Schedule 1 for individual filers or Form MI-1041 for estates and trusts.
Who files this form
Complete Form 5889 if you are eliminating income or expenses from Michigan oil, gas, or nonferrous metallic minerals extraction on your Michigan return. The form applies to extraction subject to Michigan Severance Tax.
- Deduct the related income to the extent it was included in adjusted gross income (AGI).
- Add back the related expenses to the extent they were deducted in arriving at AGI.
Individual filers carry the amounts to Michigan Schedule 1. Fiduciary filers carry them to Form MI-1041.
What you'll need
Supply supporting documentation for the amounts claimed. Attach the following federal forms and schedules that substantiate your reported amounts, as applicable:
- U.S. Form 1040 Schedules B, C, D, E, and F.
- U.S. Form 4797.
- Schedules K-1, including the K-1 notes.
- Any other applicable supporting documentation.
Attach a schedule for other income reported on line 5 or other expenses reported on line 18.
You will also need the individual filer's name and full nine-digit Social Security number, or the estate or trust's name and full Federal Employer Identification Number (FEIN).
How to file
Include Form 5889 with your MI-1040 or MI-1041.
- Enter the filer's name and identifying number at the top.
- Enter the corresponding information from the applicable U.S. Form 1040 schedules in columns A through D for income on lines 1 through 5 and expenses on lines 8 through 18.
- Add lines 1 through 5 in each column on line 6. Add the line 6 column totals on line 7, then carry that amount to Schedule 1, line 19, or MI-1041, line 33.
- Add lines 8 through 18 in each column on line 19. Add the line 19 column totals on line 20, then carry that amount to Schedule 1, line 6, or MI-1041, line 38.
- Attach the supporting documentation.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out supporting documents. The form asks for supporting documentation for amounts claimed, including schedules for other income and other expenses.
- Using separate forms for multiple businesses. Combine applicable income and expenses from all businesses on one Form 5889.
- Leaving Form 5889 out of the return. Include it with your MI-1040 or MI-1041.
Questions people ask
Do I need a separate Form 5889 for each business?
No. Combine applicable income and expenses from all businesses on one Form 5889.
Where do I report the total income?
Carry the total from line 7 to Michigan Schedule 1, line 19, or MI-1041, line 33.
Where do I report the total expenses?
Carry the total from line 20 to Michigan Schedule 1, line 6, or MI-1041, line 38.
What identifying number should I use?
Individual filers enter their full nine-digit Social Security number. Fiduciary filers enter the estate or trust's full FEIN.