MI-8949: Sales and Other Dispositions of Capital Assets (2025)
Michigan · Michigan Treasury · Used for tax years 2025
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. It uses information from U.S. Form 8949, and its totals carry to Form MI-1040D.
Who files this form
Use MI-8949 to adjust Michigan taxable income only if you have 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 forms, MI-1040D or MI-4797, and include all gains and losses realized during the tax year.
Do not use MI-8949 to apportion Michigan business income. The instructions direct you to MI-1040H or, if applicable, MI-461 for that income.
What you'll need
- U.S. Form 8949: The instructions say all information needed to complete MI-8949 should come from this form. Copy property descriptions, acquisition dates, sale dates, and federal gains or losses from columns a, b, c, and h.
- Identification: Individual filers need the filer’s name and full nine-digit Social Security number. Fiduciary filers need the estate or trust name and full Federal Employer Identification Number (FEIN).
- MI-1040D: Carry your MI-8949 computations to this form.
- U.S. Schedule D, if applicable: Amounts from line 1a, column h, and line 8a, column h, are included when reporting the corresponding totals on MI-1040D.
- Additional sheets, if needed: Include them if you need more space to list assets.
How to file
Include MI-8949 with Form MI-1040 or MI-1041, as directed on the form. The instructions specifically require both MI-8949 and MI-1040D with Form MI-1040.
- Enter short-term gains and losses in Part 1 and long-term gains and losses in Part 2.
- In column E, enter the portion of each asset’s federal gain or loss that is subject to Michigan income tax.
- 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. Include any applicable U.S. Schedule D amounts described in the instructions.
- Complete and include page 2. The form cannot be processed without it.
- Report whole dollar amounts and type or print in blue or black ink.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Leaving out page 2: The form cannot be processed unless page 2 is completed and included.
- Entering cents: Round amounts below 50 cents down and amounts of 50 through 99 cents up. Do not enter cents.
- Omitting required attachments: The instructions require both MI-8949 and MI-1040D with Form MI-1040.
- 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.
- Using Section 271 for ineligible distributions: Capital gain distributions and pension, stock bonus, or profit-sharing trust distributions treated as long-term capital gains under Internal Revenue Code Section 402 are not eligible.
Questions people ask
What is the difference between short-term and long-term gains and losses?
Short-term assets were held one year or less and belong in Part 1. Long-term assets were held more than one year and belong in Part 2.
What goes in the federal and Michigan columns?
Column D shows the federal gain or loss from U.S. Form 8949, column h. Column E shows the portion subject to Michigan income tax.
How do I report U.S. obligations that Michigan cannot tax?
Enter zero in the Michigan column for gains or losses from the sale of these non-taxable U.S. obligations. Their gains are not subject to Michigan tax, and their losses are not deductible.
What if I need more room to list assets?
Include additional sheets. Include their short-term totals on line 2 and their long-term totals on line 4.