Michigan Business Tax Questions

[Denne]

I have a question in regard to your handling of two companies both having their own Federal identification numbers. One is a Sole proprietorship and the other is an LLC. I have been treating both companies individually....since I thought that was the purpose of the LLC. The LLC is a multi-member with both the husband and the wife. The other business is in the husband's name only. Should they be treated individually or both be on the same MBT?

My second question is your interpretation of the credit for "Net Earnings from self employment" deduction. Wouldn't that mean that the net earnings from both the Schedule C and from the Schedule E both be included on that line 41 subtraction then?

Thanks for your assistance ;~)

[TAXBILLY]

1) What entity is the LLC?

2) Schedule E handles unearned income, not earned income and therefore is not subject to SE.

taxbilly

[Denne]

1) What entity is the LLC?

Mulit Member (Partnership between the husband and wife) Isn't the separate Federal Identity making it a separate business and not income under the husband's MBT return? Let me know how you view this.....

2) Schedule E handles unearned income, not earned income and therefore is not subject to SE.

taxbilly

The same deduction of Net Profit...by pass through income, so probably doesn't matter in that regard.

Thanks!

[TAXBILLY]

Since you have a partnership return I would assume the husband's K-1 would be the only one to affect the MBT but I defer to someone from Michigan.

taxbilly