MI-1040D: Adjustment of Capital Gains and Losses (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Form MI-1040D adjusts capital gains and losses for Michigan income tax and is included with Form MI-1040. It reports federal and Michigan short-term and long-term gains and losses and calculates capital loss carryovers from 2025 to 2026.
Who files this form
Use the 2025 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 and/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 a Section 271 adjustment, you must file the equivalent Michigan form, MI-1040D or MI-4797. Include all items of gain or loss 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, if applicable, MI-461.
What you'll need
Have the following available, as applicable to your return:
- Your name and full Social Security number, plus your spouse’s information for a joint return.
- U.S. Form 1040 and Schedule D. MI-1040D follows the federal Schedule D.
- MI-8949, including the short-term totals on line 2 and long-term totals on line 4.
- Applicable gain or loss information from federal Forms 6252, 4684, 6781, 8824, 4797 and 2439, and Schedule K-1s.
- Your short-term and long-term capital loss carryover amounts from 2024.
- MI-1040 and Schedule 1 or Schedule NR, as applicable, for reporting the adjustments.
For Part 4, the form uses U.S. Form 1040, lines 11 and 14, and MI-1040, lines 12 and 13.
How to file
Include MI-1040D with your 2025 Form MI-1040. Type or print in blue or black ink, and enter money amounts in whole dollars.
Carry the MI-1040D computations to Schedule 1 or Schedule NR, as applicable, and include those schedules with MI-1040. Nonresidents and part-year residents allocating capital gains or losses should see the instructions for Schedule NR, line 8.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Entering cents: Use whole dollars. Round down amounts below 50 cents and round up amounts from 50 through 99 cents.
- Leaving out identification: Be sure to enter names and Social Security numbers at the top of the form.
- Using this form to apportion business gains or losses: Use MI-1040H or MI-461, if applicable, instead.
- Comparing negative amounts incorrectly on line 13: Treat the losses as positive numbers when deciding which is smaller. Transfer the line 13 loss amounts to Schedule 1 as positive amounts.
- Completing carryover lines when they do not apply: Complete lines 20 through 24 only if lines 5 and 13 are losses. Complete lines 25 through 31 only if lines 11 and 13 are losses.
Questions people ask
What is the difference between short-term and long-term gains or losses?
Part 1 covers assets held one year or less. Part 2 covers assets held more than one year.
What goes in the federal and Michigan columns?
Column D shows federal gain or loss. Column E shows the portion subject to Michigan income tax. In Parts 3 and 4, column F is federal and column G is Michigan.
Where do I report a net gain from line 12?
Carry the gain in column F to Schedule 1, line 12, and the gain in column G to Schedule 1, line 3. Nonresidents and part-year residents should see the instructions for Schedule NR, line 8.
How much of a loss goes on line 13?
For each column, enter the smaller of the line 12 loss or $3,000, or $1,500 if married filing separately. Compare losses as though they were positive numbers. 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 2026?
Yes. Part 4 computes capital loss carryovers from 2025 to 2026. Line 24 gives the short-term carryover, and line 31 gives the long-term carryover.