MI-8949: Sales and Other Dispositions of Capital Assets (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form MI-8949 reports short-term and long-term capital gains and losses, showing both federal amounts and the portions subject to Michigan income tax. Its totals carry to Form MI-1040D, and it is included with Form MI-1040 or MI-1041.
Who files this form
Use the 2024 MI-8949 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.
Do not use MI-8949 to apportion Michigan business income. The instructions direct that income to MI-1040H or, if applicable, MI-461.
What you'll need
Have the following ready:
- Your U.S. Form 8949. The instructions say to take the information needed for MI-8949 from this federal form.
- Your U.S. Schedule D, if it includes amounts on line 1a, column h, or line 8a, column h. Those amounts are included in the corresponding MI-1040D totals.
- Form MI-1040D, where you carry the MI-8949 computations.
- The individual filer’s name and full nine-digit Social Security number, or the estate or trust’s name and full Federal Employer Identification Number (FEIN).
- Additional sheets if you need more room to list assets.
How to file
Include MI-8949 with Form MI-1040 or MI-1041. For an MI-1040 return, the instructions require both MI-8949 and MI-1040D to be included.
To complete MI-8949:
- Type or print in blue or black ink and report whole-dollar amounts.
- Use Part 1 for assets held one year or less and Part 2 for assets held more than one year.
- Copy U.S. Form 8949 columns a, b, c and h into MI-8949 columns A, B, C and D. Enter the portion subject to Michigan income tax in column E.
- Total the short-term amounts on line 2 and carry them to MI-1040D, line 1. Total the long-term amounts on line 4 and carry them to MI-1040D, line 6. The instructions also require the applicable U.S. Schedule D line 1a and line 8a amounts in those MI-1040D totals.
- Complete and include page 2. The form cannot be processed without it.
Common mistakes
- Leaving out page 2: The form cannot be processed unless page 2 is completed and included.
- Entering cents: Round down amounts below 50 cents and round up amounts of 50 through 99 cents. Do not enter cents.
- Using MI-8949 to apportion business gains or losses: Use MI-1040H or, if applicable, MI-461 instead. Business-property gains and losses reported and apportioned to Michigan on MI-1040H should not appear in MI-8949 column E.
- Omitting required attachments from an MI-1040 return: Include both MI-8949 and MI-1040D.
- Applying Section 271 treatment to ineligible distributions: Capital gains distributions and the specified pension, stock bonus or profit-sharing trust plan distributions treated as long-term capital gains are not eligible.
Questions people ask
What counts as a short-term or long-term gain or loss?
Assets held one year or less belong in Part 1 for short-term gains and losses. Assets held more than one year belong in Part 2 for long-term gains and losses.
What if I run out of room to list assets?
Include additional sheets. Include their short-term totals on line 2 and their long-term totals on line 4.
How do I report gains or losses from non-taxable U.S. obligations?
Enter zero in the Michigan column for gains or losses from the sale of these obligations. The gains are not subject to Michigan tax, and the losses are not deductible.
How are sales of nonbusiness property in another state treated?
The instructions say gains from these sales are not subject to Michigan tax and losses are not deductible.