Baker Spindler Holtz                                  CPAs and Advisors

Michigan Business Tax Planning Opportunities

  

December 22, 2011
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Baker Spindler Holtz is located in the heart of downtown Grand Rapids.  We have been providing quality service to our clients for over three decades. 
 

The Michigan Business Tax (MBT) is in its final days as its repeal is effective at the end of the calendar year.  The repeal gives rise to several planning opportunities for taxpayers who will be filing an MBT return for 2011.  In this year of transition, please see the following list of ideas that may help decrease your 2011 liability on your final MBT return.

 

  • Consider accelerating purchases that reduce the gross receipts tax base or that increase or maximize credit utilization.

 

  • Consider deferring income or transactions, to the extent possible, which increase business income or the gross receipts tax base.

 

  • Consider selling fixed assets that are not fully depreciated in January 2012 rather than in December 2011 in order to avoid Investment Tax Credit recapture.

 

  • Consider prepaying personal property taxes on industrial parcels to take advantage of the credit in 2011 as it will cease to exist for 2012.

 

These ideas work especially well for S Corporations, sole proprietorships and LLCs as these taxpayers will not be subject to the MBT's replacement, the Michigan Corporate Income Tax.

 

Please call us if you have questions regarding the Michigan Business Tax or the Michigan Corporate Income Tax.

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Disclaimer:  Any tax advice contained in the body of this e-mail was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.