Michigan – Individuals may combine income and apportionment from unitary flow-through businesses income

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On June 24, 2013, the Michigan Supreme Court held that individual taxpayers could combine the profits and losses from unitary flow-through businesses and apportion such income on the basis of the businesses’ combined apportionment factors for purposes of the Michigan Individual Income Tax. The court also held that, during the 1994 and 1995 tax years, such apportionment could properly be applied to a foreign entity if the foreign entity and the individual taxpayer’s in-state business were unitary. [Malpass v. Department of Treasury, Mich. Sup. Ct., No. 144430 (6/24/13)]


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