Michigan taxpayers who have a Net Operating Loss (NOL) may need to complete Schedule MI-1045 to determine the amount of the loss available for carryforward and future deductions.
Schedule MI-1045 is used to calculate the Michigan NOL and maintain the records needed to support future Michigan NOL deductions claimed on Form MI-5674.
Program Entry
Michigan Return → Miscellaneous Forms → MI Net Operating Loss Schedule MI-1045
Loss Year
Enter the tax year in which the Michigan Net Operating Loss was created.
The loss year determines the period from which the NOL originated and is used when calculating future carryforward amounts.
Was a Federal Form 1045 Filed?
Select Yes if you filed Federal Form 1045, Application for Tentative Refund, for the loss year.
Select No if no federal Form 1045 was filed.
For most taxpayers, this answer is informational and helps identify how the federal NOL was treated.
Adjusted Gross Income from MI-1040 for the Loss Year
Enter the Adjusted Gross Income (AGI) reported on the Michigan return for the loss year.
This amount serves as the starting point for calculating the Michigan NOL.
Additions to Loss Year Income
Certain additions must be included when determining the Michigan NOL.
Additions on Schedule 1
Enter additions reported on Michigan Schedule 1 for the loss year.
Gains from MI-1040D and MI-4797
Enter gains reported on:
- MI-1040D (Adjustments of Capital Gains and Losses)
- MI-4797 (Adjustments of Gains and Losses From Sales of Business Property)
Losses Attributable to Other States
Enter losses attributable to another state that were reported on Schedule 1.
Federal Net Operating Loss Deduction
Enter any federal NOL deduction claimed for the loss year.
Oil, Gas, and Nonferrous Metallic Mineral Income
Enter qualifying oil, gas, and nonferrous metallic mineral income reported on Schedule 1.
Reductions to Loss Year Income
Certain amounts must be removed from income when calculating the Michigan NOL.
Gains from Federal Form 1040D and Federal Form 4797
Enter gains reported on:
- Federal Schedule D
- Federal Form 4797
to the extent required by Michigan NOL calculations.
Interest and Dividends from Other States
Enter interest and dividend income from obligations issued by states other than Michigan.
Miscellaneous Subtractions
Enter miscellaneous Michigan subtractions claimed on Schedule 1.
Oil, Gas, and Nonferrous Metallic Mineral Income Included in Other Subtractions
Enter any qualifying oil, gas, and nonferrous metallic mineral income already included in other subtraction amounts.
Modifications to Loss Year Income
Additional adjustments may be required when calculating the Michigan NOL.
Excess Capital Loss (Enter as a Positive Number)
Enter any excess capital loss applicable to the loss year.
Michigan NOL calculations require special treatment of capital losses.
Michigan Excess Business Loss
Enter any Michigan Excess Business Loss amount.
This amount is generally calculated using Form MI-461, Excess Business Loss.
Michigan Personal Exemption Deductions
Michigan personal exemption deductions must be considered when calculating a Michigan NOL.
Payments to a Retirement Plan Not Included as Self-Employment Income
Enter qualifying retirement contributions that were not included as self-employment income.
Alimony Deducted and Not Properly Included in Income
Enter qualifying alimony adjustments applicable to the loss year.
Other Adjustments to Income
Enter any additional Michigan adjustments required when calculating the net operating loss.
Michigan Personal Exemption Income
Interest Income
Enter taxable interest income included in Michigan income.
Dividend Income
Enter dividend income included in Michigan income.
Net Capital Losses and Other Gains or Losses Not Attributable to a Trade or Business
Enter capital losses and other gains or losses that are not attributable to a trade or business.
Pensions, IRAs, and Annuities
Enter pension, IRA, and annuity income included in the calculation.
Taxable Alimony and Other Income
Enter taxable alimony and any other qualifying nonbusiness income.
How Does This Affect My Return?
Schedule MI-1045 is used to determine the amount of Michigan Net Operating Loss available for carryforward.
The resulting NOL may:
- Be carried forward to future tax years.
- Reduce future Michigan taxable income.
- Support a future deduction claimed on Form MI-5674.
Notes
- Schedule MI-1045 calculates the Michigan Net Operating Loss for the loss year.
- The Michigan NOL may differ from the federal NOL.
- Keep supporting documents for the loss year and all carryforward years.
- Amounts entered on this schedule may affect future Michigan NOL deductions.
- If a Michigan NOL deduction is claimed in a future year, Form MI-5674 may also be required.