MI-1041D: Adjustments of Capital Gains and Losses (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form MI-1041D reports an estate’s or trust’s federal and Michigan short-term and long-term capital gains and losses. It calculates capital loss limitations, capital adjustments for resident estates and trusts, and loss carryovers to 2025, and is included with Form MI-104
Who files this form
Use the 2024 MI-1041D to adjust Michigan taxable income if an estate or trust has capital gains or losses attributable to:
- Sales of certain property located in other states or subject to Michigan’s allocation provisions. For gains or losses subject to Michigan’s apportionment provisions, the instructions refer to MI-1040H.
- Periods before October 1, 1967, under the Section 271 adjustment.
- Sales or exchanges of U.S. obligations that Michigan cannot tax.
If federal Form 1041 Schedule D or Form 4797 was filed and an election was made to adjust under Section 271, file the equivalent Michigan forms, MI-1041D or MI-4797. Include all items of gain or loss realized during the tax year.
What you'll need
Have the following information and forms available, as applicable:
- The estate or trust’s name and Federal Employer Identification Number (FEIN).
- Federal Form 1041 Schedule D. The instructions say this provides the information needed for page 1 of MI-1041D.
- Federal Form 8949 and Michigan Form MI-8949. If federal Form 8949 was filed, complete MI-8949 in the same manner and transfer the information to MI-1041D.
- Michigan Form MI-1041, including Schedule 4 and, for nonresident estates and trusts, Schedule NR.
- Short-term and long-term capital loss carryover amounts from 2023.
- Federal Forms 2439, 4684, 4797, 6252, 6781 and 8824, if they supply gains or losses reported on this form.
- Federal Form 1041 or Form 990-T, if completing the capital loss carryover calculation.
For a Section 271 adjustment, you will also need the property’s acquisition and disposal dates to calculate the holding period.
How to file
Include MI-1041D with the Michigan Fiduciary Income Tax Return, Form MI-1041. Type or print in blue or black ink, and enter the estate or trust’s name and FEIN at the top.
- Complete Parts 1 and 2 for short-term and long-term gains and losses, then summarize them in Part 3.
- Resident estates and trusts follow the form’s directions through Parts 4 and 5. Transfer the capital adjustment from line 21 to MI-1041, line 11.
- Nonresident estates and trusts transfer line 15, column B, Michigan column, to MI-1041 Schedule NR, line 24. Transfer line 16, Michigan column E, to Schedule NR, line 27.
- Complete Part 6 when required to calculate capital loss carryovers from 2024 to 2025.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Entering cents: Round down amounts of 49 cents or less and round up amounts of 50 cents or more. Cents entered on the form will be treated as whole dollar amounts.
- Comparing losses as negative numbers on line 16: When deciding whether the fiduciary’s share of the net loss or $3,000 is smaller, treat both amounts as positive.
- Completing the wrong carryover subsection: Complete the short-term carryover section only if both line 5 and line 15, column A, show a loss. Complete the long-term carryover section only if both line 12 and line 15, column A, show a loss.
- Leaving out expenses related to U.S. obligations: The instructions note that interest and other expenses incurred in producing income from U.S. obligations should be entered on MI-1041, line 32.
Questions people ask
What is the difference between short-term and long-term gains and losses?
Part 1 covers assets held one year or less. Part 2 covers assets held more than one year.
Do I need to complete Michigan Form MI-8949?
If federal Form 8949 was filed, complete MI-8949 in the same manner and transfer the information to MI-1041D. Assets reported on federal Form 8949 under Internal Revenue Code Sections 1245 and 1250 must also be reported on MI-8949.
When do I complete Part 6?
Complete Part 6 if the net loss on line 15, column A, is more than $3,000, or if taxable income on federal Form 1041, line 23, or Form 990-T is zero or less. This part calculates capital loss carryovers from 2024 to 2025.
How do I report gains or losses from U.S. obligations that Michigan cannot tax?
Enter zero in the Michigan column. Gains from these obligations are not subject to Michigan tax, and losses are not deductible. The instructions separately state that capital gains or losses from sales or exchanges of municipal bonds are taxable for Michigan residents.