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For Michigan Tax Preparers

Level 2

I'm not that familiar with Michigan taxes but I have a new client that sold their entire interest in a PTP  and has the following passive Income (loss)  from this activity for 2020: Ordinary Income (loss)  (6,718) Sec 231 Loss of (161) and Ordinary Gain on form 4797 of  17,580 for a net gain of $10,701. The PTP does not have operations in Michigan. I see that Michigan allows a deduction for Net Business Income earned in Other States. My question is since all this income is from a paasive activity is the total $10,701 a deduction on their Michigan return?

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