MI-1040CR-5: Farmland Preservation Tax Credit Claim (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form MI-1040CR-5 calculates the 2024 Farmland Preservation Tax Credit using taxes on land covered by Farmland Developmental Rights Agreements, household income, and applicable loss adjustments. It is included with Form MI-1040.
Who files this form
Use the 2024 MI-1040CR-5 to claim Michigan’s Farmland Preservation Tax Credit for taxes on land covered by a Farmland Developmental Rights Agreement. Include the claim with Form MI-1040.
The form does not provide a full list of eligibility requirements.
What you'll need
Have these forms and details available:
- A completed Schedule CR-5. You must complete it before Part 1.
- Form MI-1040, which must include this claim.
- MI-1040CR, MI-1040CR-2 or MI-1040CR-7, as applicable, for total household resources. The form also uses MI-1040CR or MI-1040CR-2 for the homestead property tax credit amount.
- Your federal return, including any depletion allowance, business or farm income or loss, rental or royalty loss, and applicable net operating loss and deduction information.
- Your full Social Security number and, for a joint return, your spouse’s name and full Social Security number.
- Taxes on your home and farmland that qualify for a property tax credit but are not under a Farmland Developmental Rights Agreement, if applicable.
How to file
Include MI-1040CR-5 with Form MI-1040. Type or print in blue or black ink.
Complete Schedule CR-5 before completing Part 1. Complete the applicable loss calculations on page 2 and carry the total loss adjustment from line 33 to line 9.
Transfer the credit to MI-1040, line 26, as directed:
- If line 17 is less than line 7, transfer line 15 and stop.
- If line 17 is greater than line 7, complete lines 18 through 20 and transfer line 20.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Do not complete Part 1 before completing Schedule CR-5.
- Check line 5 only if all taxes qualifying for a homestead property tax credit are included on line 4. If you do not check it, enter the qualifying taxes not under an agreement on line 6.
- On line 14, enter zero if multiplying line 12 by 3.5% gives a negative result.
- If you have no federal net operating loss deduction, skip Part 4 to line 33.
- Enter the federal net operating loss deduction on line 25 as a positive number, but the allowable deduction on line 32 as a negative number.
- If you did not itemize deductions, skip to line 29g for the standard deduction.
Questions people ask
Where do I get total household resources?
Use MI-1040CR, line 33; MI-1040CR-2, line 32; or MI-1040CR-7, line 37. Enter the amount on line 8.
Does the calculation include a federal depletion allowance?
Yes. Enter the depletion allowance claimed on your federal return on line 11, then add it to line 10 to complete line 12.
Who completes the business and farm loss section?
Part 2 applies to taxpayers with a net business or farm loss on MI-1040CR, line 16; MI-1040CR-2, line 15; or MI-1040CR-7, line 21. The combined amount on line 23 must be less than zero.
How is the total loss adjustment calculated?
Combine lines 23, 24 and 32 on line 33, then carry the result to line 9 on page 1. The form states that this adjustment must be less than zero.