Section R. 206.6 - Income from obligations and securities of states other than MichiganRule 6.
(1) Gross interest and dividend income from obligations and securities of states other than Michigan, and their political subdivisions, not subject to federal income taxes, including such interest and dividends from qualifying mutual funds, shall be added to adjusted gross income.(2) The income may be reduced by related expenses not deducted in computing federal adjusted gross income because of the internal revenue code, 26 U.S.C. S265(1). | (a) Example: | |
| Gross interest income from state of Ohio bonds&&&&. | $600.00 |
| Expense (investment counseling fees, bank charges brokerage fees)&&&&&&&&&&&&&&&&&. | 32.00 |
| Interest income to be added to adjusted gross income&& | _______ $568.00 |
(b) Interest on indebtedness incurred in carrying the obligation or security is not deductible from the interest or dividend income.Mich. Admin. Code R. 206.6