Michigan SBT - S corporation business income includes only built-in gains and excess passive income

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For purposes of the Single Business Tax, an S corporation's tax base is its federal taxable income. Because an S corporation has no federal taxable income except for built-in gains and excess passive income, "only the amount of those built-in gains and excess passive income would constitute 'business income' under the SBT." [TMW Enterprises, Inc. v. Department of Treasury, Mich. Ct. of App. Dkt. No. 302870, (8/14/12)]



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