Personal Investment Activities Not in the Regular Course of the Taxpayer's Trade or Business Are Not Subject to the Single Business Tax
Public Act 304 of 2011 (S.B. 368), effective December 27, 2011, but applicable retroactively is applicable to the Single Business Tax (SBT) which was repealed effective for tax periods prior to January 1, 2008. For purposes of the former Single Business Tax, the Michigan Department of Treasury shall not assess tax or decrease an overpayment and shall approve a claim for a refund (subject to the statute of limitations) for:
(1) an individual, estate, or person organized for estate or gift planning purposes for amounts received, income, or gain other than those from transactions, activities, and sources in the regular course of the person's trade or business and
(2) for receipts, income, or gain from transactions, activities, and sources in the regular course of the person's trade or business by a person organized exclusively to conduct investment activities for any person other than an individual or a person related to that individual or by common trust fund established under the Collective Investment Funds Act.