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Sec. 28. (1) “Income from estates” means “income” as defined in section 643(b) of the federal internal revenue code, properly paid, credited or distributed but not in excess of the resident individual's share of the distributable net income of the estate decreased by the amount of depreciation or depletion allowed the resident individual as a deduction under section 642 of the federal internal revenue code. The exceptions hereinafter set forth with respect to trusts are also applicable to income from estates. “Income from trusts” means the amount of “income” as defined in section 643(b) of the federal internal revenue code, distributed or required to be distributed under sections 652(a) or 662(a)(1) of the federal internal revenue code, decreased by the amount of depreciation or depletion allowed the resident individual as a deduction by section 642 of the federal internal revenue code, with the following exceptions:
(a) Dividends on stock of state and national banks and trust companies.
(b) Interest from obligations of the United States, the states or subordinate units of government of the states.
(2) Income received by a resident individual from a fiduciary shall retain the character it held in the hands of the fiduciary. With respect to trusts where the income is taxed to the grantor or some other person under subpart E of subchapter J of the federal internal revenue code, the grantor or other person shall include in his return all items of income and deductions allowed by this ordinance.
(3) An individual shall include “income from estates and trusts” in his return in the same year as provided in the federal internal revenue code with respect to distributions of income from estates and trusts. The amount of income included in the return for the first tax year of a resident individual, with respect to estates and trusts, shall be computed as though the tax year of the estate or trust for federal income tax purposes began on the effective date of this ordinance and ended with the end of the tax year of the estate or trust for federal income tax purposes which ends next following the effective date.
Cite this article: FindLaw.com - Michigan Compiled Laws, Chapter 141. Municipal Financing § 141.628 - last updated February 09, 2022 | https://codes.findlaw.com/mi/chapter-141-municipal-financing/mi-comp-laws-141-628.html
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