MI-1040D: Adjustment of Capital Gains and Losses (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form MI-1040D reports federal and Michigan short-term and long-term capital gains and losses to calculate adjustments to Michigan taxable income. It also calculates capital loss carryovers from 2024 to 2025 and is included with Form MI-1040.
Who files this form
Use the 2024 MI-1040D only to adjust Michigan taxable income for capital gains or losses attributable to:
- Sales of certain types of property located in other states or subject to Michigan’s allocation provisions.
- Periods before October 1, 1967, under the Section 271 adjustment.
- Sales or exchanges of U.S. obligations that Michigan cannot tax.
If you file U.S. Schedule D or Form 4797 and elect the Section 271 adjustment, you must file the equivalent Michigan form, MI-1040D or MI-4797. Include all gains and losses realized during the tax year.
Do not use MI-1040D to apportion Michigan business gains or losses. The instructions direct those amounts to MI-1040H or MI-461, if applicable.
What you'll need
Have these forms and details available, as applicable:
- Your federal Schedule D, which supplies the federal gain and loss information.
- MI-8949, including the short-term total on line 2 and long-term total on line 4.
- U.S. Form 1040 and Michigan Form MI-1040 for the capital loss carryover calculation in Part 4.
- Schedule 1 or Schedule NR to report the MI-1040D results.
- Your name and full Social Security number, plus your spouse’s information if filing jointly.
- Your short-term and long-term capital loss carryovers from 2023.
The form also references Schedule K-1 and U.S. Forms 2439, 4797, 6252, 4684, 6781 and 8824 for applicable gains and losses.
How to file
Include MI-1040D with your Michigan Form MI-1040. Carry its calculations to Schedule 1 or Schedule NR, as applicable, and include those forms with MI-1040 too.
Type or print in blue or black ink. Enter money amounts in whole dollars.
Nonresidents and part-year residents allocating capital gains or losses should follow the instructions for Schedule NR, line 8.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out identification. Be sure to enter names and Social Security numbers at the top of the form.
- Entering cents. Round down amounts below 50 cents and round up amounts from 50 through 99 cents.
- Comparing losses incorrectly. When deciding which negative number is smaller for line 13, compare the amounts as if both were positive. Transfer the line 13 loss to Schedule 1 as a positive amount.
- Completing carryover lines that should be skipped. Complete lines 20 through 24 only if both lines 5 and 13 are losses. Complete lines 25 through 31 only if both lines 11 and 13 are losses.
- Using this form to apportion business gains or losses. Use MI-1040H or MI-461, if applicable, instead.
Questions people ask
What counts as a short-term or long-term gain or loss?
Part 1 covers assets held one year or less. Part 2 covers assets held more than one year.
Where do I report a net gain?
If line 12 is a gain, carry the federal amount in column F to Schedule 1, line 12, and the Michigan amount in column G to Schedule 1, line 3. Nonresidents and part-year residents should see the instructions for Schedule NR, line 8.
How much loss goes on line 13?
For each column, enter the smaller of the line 12 loss or $3,000. The limit is $1,500 if married filing separately. Compare the loss amounts as if they were positive. Carry column F to Schedule 1, line 5, and column G to Schedule 1, line 23, as positive amounts. Nonresidents and part-year residents should see the instructions for Schedule NR, line 8.
Does this form calculate losses carried forward to 2025?
Yes. Part 4 calculates capital loss carryovers from 2024 to 2025. Line 24 shows the short-term carryover, and line 31 shows the long-term carryover.