MI-1041D: Adjustments of Capital Gains and Losses (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form MI-1041D reports an estate’s or trust’s short-term and long-term capital gains and losses and calculates Michigan capital adjustments, loss limitations, and loss carryovers. It is included with the Michigan Fiduciary Income Tax Return, MI-1041.
Who files this form
Use the 2025 MI-1041D to adjust Michigan taxable income if an estate or trust has capital gains or losses attributable to:
- Sales of certain types of 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 a Section 271 adjustment.
- Sales or exchanges of U.S. obligations that cannot be taxed by Michigan.
If federal Form 1041 Schedule D or Form 4797 was filed and a Section 271 election was made, 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 applicable forms available:
- The estate or trust’s name and Federal Employer Identification Number (FEIN).
- U.S. Form 1041 Schedule D, which supplies the information for page 1 of MI-1041D.
- U.S. Form 8949 and Michigan Form MI-8949, if federal Form 8949 was filed.
- Applicable federal Forms 2439, 4684, 4797, 6252, 6781 and 8824 for the gains or losses requested on the form.
- Information about gains or losses from partnerships, S corporations, and other estates or trusts, plus capital gain distributions.
- Short-term and long-term capital loss carryovers from 2024.
- U.S. Form 1041 or Form 990-T and Michigan Form MI-1041, if completing the capital loss carryover calculation.
For a Section 271 adjustment, you 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, MI-1041. Type or print in blue or black ink, and enter the estate or trust’s name and FEIN.
Resident estates and trusts enter the capital adjustment from MI-1041D, line 21, on MI-1041, line 11.
Nonresident estates and trusts transfer the Michigan amount from line 15, column B, to MI-1041 Schedule NR, line 24. Transfer the Michigan amount from line 16, column E, to Schedule NR, line 27.
The supplied text does not give a mailing address or e-filing 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 negative numbers on line 16: Treat both amounts as positive when deciding which is smaller: the fiduciary’s share of the net loss or $3,000.
- Completing carryover sections without the required losses: 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.
- Omitting expenses related to U.S. obligations: The instructions note that interest and other expenses incurred to produce income from U.S. obligations should be entered on MI-1041, line 32.
Questions people ask
What counts as short-term or long-term?
Part 1 covers assets held one year or less. Part 2 covers assets held more than one year.
Do I need to complete MI-8949?
If U.S. Form 8949 was filed, complete MI-8949 in the same manner and transfer the information to MI-1041D as directed. Capital assets disclosed on federal Form 8949 under Internal Revenue Code Sections 1245 and 1250 must also be reported on MI-8949.
When do I calculate a capital loss carryover?
Complete Part 6 if the net loss on line 15, column A, is more than $3,000, or if taxable income on U.S. Form 1041, line 23, or U.S. Form 990-T is zero or less. This part calculates carryovers from 2025 to 2026.
How do I report gains or losses from nontaxable U.S. obligations?
Enter zero in the Michigan column for gains or losses from the sale or exchange of these obligations. Gains are not subject to Michigan tax, and losses are not deductible.