Mich. Comp. Laws » Michigan Compiled Laws / Chapter 206 / Act 281 of 1967
Michigan Compiled Laws

Mich. Comp. Laws § 206.4 (2026)

"Business income” defined.

✓ current as of July 2026
Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

INCOME TAX ACT OF 1967


Act 281 of 1967


206.4 "Business income” defined.

Sec. 4.

    "Business income" means all income arising from transactions, activities, and sources in the regular course of the taxpayer's trade or business and includes the following:

    (a) All income from tangible and intangible property if the acquisition, rental, management, or disposition of the property constitutes integral parts of the taxpayer's regular trade or business operations.

    (b) Gains or losses from stock and securities of any foreign or domestic corporation and dividend and interest income.

    (c) Income derived from isolated sales, leases, assignment, licenses, divisions, or other infrequently occurring dispositions, transfers, or transactions involving property if the property is or was used in the taxpayer's trade or business operation.

    (d) Income derived from the sale of a business.

History: 1967, Act 281, Eff. Oct. 1, 1967 ;-- Am. 2003, Act 52, Imd. Eff. July 14, 2003 ;-- Am. 2011, Act 38, Eff. Jan. 1, 2012

Notes of Decisions
Cited in 9 cases, 1981–2014 · leading case: Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013).
Sort: Relevance Newest Treatment
Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013). “26 MCL 206.4(2). 27 Sun Valley Foods, 460 Mich at 236 .”
Allard v. Allard, 867 N.W.2d 866 (Mich. Ct. App. 2014). “” MCL 206.4. The record reveals that, as of March 2011, during the pendency of the divorce proceedings, plaintiff incurred in excess of $5,600 a month in expenses for such items as the mortgage, taxes, insurance, and outside maintenance on the marital home (which was classified…”
Chocola v. Dep't of Treasury, 369 N.W.2d 843 (Mich. 1985). “[MCL 206.4(2); MSA 7.557(104)(2).] Under these provisions, a Michigan resident’s income from any source is allocated to Michigan unless statutorily attributable to another state.”
Grunewald v. Dep't of Treasury Wortley, 305 N.W.2d 269 (Mich. Ct. App. 1981). “Section 4(2) of the act, MCL 206.4(2); MSA 7.557(104)(2) states: *605 " 'Business income’ means income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the…”
Bachman v. Dep't of Treasury, 544 N.W.2d 733 (Mich. Ct. App. 1996). “[MCL 206.4(2); MSA 7.557(104X2).] Here, the parties in each case propose two prh marily competing interpretations of the foregoing provisions for determining whether distributable income received by a nonresident individual is taxable income that may be allocated to Michigan.”
Wisne v. Dep't of Treasury, 625 N.W.2d 401 (Mich. Ct. App. 2001). “] “Business income” was defined in chapter 1 of the act as income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, rental, management and…”
Chocola v. Dep't of Treasury, 348 N.W.2d 290 (Mich. Ct. App. 1984). “” MCL 206.4(2); MSA 7.557(104X2). *826 III An election by a small business corporation to receive subchapter S treatment eliminates the federal corporate tax and passes the corporation’s gains and losses through to its shareholders for tax purposes.”
Wilson v. Dep't of Treasury, 333 N.W.2d 3 (Mich. Ct. App. 1982). “” MCL 206.4(2); MSA 7.557(104X2). Plaintiffs claim that the foregoing provisions dictate that distributions from out-of-state subchapter S corporations to Michigan residents are not includable in the latters’ income subject to the Michigan income tax.”
Est. of Thomas M Wheeler v. Dep't of Treasury (Mich. 2013). · cites it 2× “MCL 206.4(2), 206.102, 206.103, and 206.110(1) clearly require an individual taxpayer with business income stemming from business activity both within and outside of the state to allocate and apportion all business income using the formula set forth in MCL 206.”
— Mich. Comp. Laws § 206.4(2) — 8 cases
Tad Malpass v. Dep't of Treasury, 833 N.W.2d 272 (Mich. 2013). “26 MCL 206.4(2). 27 Sun Valley Foods, 460 Mich at 236 .”
Chocola v. Dep't of Treasury, 369 N.W.2d 843 (Mich. 1985). “[MCL 206.4(2); MSA 7.557(104)(2).] Under these provisions, a Michigan resident’s income from any source is allocated to Michigan unless statutorily attributable to another state.”
Grunewald v. Dep't of Treasury Wortley, 305 N.W.2d 269 (Mich. Ct. App. 1981). “Section 4(2) of the act, MCL 206.4(2); MSA 7.557(104)(2) states: *605 " 'Business income’ means income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the…”
Bachman v. Dep't of Treasury, 544 N.W.2d 733 (Mich. Ct. App. 1996). “[MCL 206.4(2); MSA 7.557(104X2).] Here, the parties in each case propose two prh marily competing interpretations of the foregoing provisions for determining whether distributable income received by a nonresident individual is taxable income that may be allocated to Michigan.”
Wisne v. Dep't of Treasury, 625 N.W.2d 401 (Mich. Ct. App. 2001). “] “Business income” was defined in chapter 1 of the act as income arising from transactions, activities and sources in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, rental, management and…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.