The Tax Cuts and Jobs Act – How does it affect homeowners?

The Tax Cuts and Jobs Act – How does it affect homeowners?

Here are the major provisions that will affect current and prospective homeowners. All individual provisions are generally effective after December 31, 2017 for the 2018 tax filing year and expire on December 31, 2025 unless otherwise noted. The provisions do not affect tax filings for 2017 unless noted.

Deduction for State and Local Property Taxes

• The final bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. This $10,000 limit applies for both single and married filers and is not indexed for inflation.
• The final bill also specifically precludes the deduction of 2018 state and local income taxes prepaid in 2017.

Mortgage Interest Deduction

• The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Neither limit is indexed for inflation.
• Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced.
• The final bill repeals the deduction for interest paid on home equity debt through 12/31/25. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.
• Interest remains deductible on second homes, but subject to the $1 million / $750,000 limits.

Moving Expenses

• The final bill repeals moving expense deduction and exclusion, except for members of the Armed Forces.

Source: https://www.nar.realtor/taxes/tax-reform/the-tax-cuts-and-jobs-act-what-it-means-for-homeowners-and-real-estate-professionals?tp=i-H43-Bb-1Jq-1b4c2-1p-C5u1-1c-1Z75h-1DcSmD&om_rid=23612206%20&Om_ntype=NARstandard&om_mid=5074#!#Current%20and%20Prospective%20Homeowners Copyright National Association of REALTORS®. Reprinted with permission.

Michigan House Bill 4753 Passed - Prevents Property Tax Increase on Family Real Estate Transfers

Michigan House Bill 4753 Becomes Law

Public Act 497 of 2012
Prevents Tax Increase on Family Real Estate Transfers

House Bill 4753 sponsored by Rep. Peter Pattalia is a bill that became law on December 28, 2012. The law will affect the transfer of real estate between family members beginning on December 31, 2013. Previously in Michigan when residential real property is transferred to a new owner (including family members), the taxable value generally “uncaps” to the true market value of the property. Once you own residential real estate the taxable value cannot increase from one year to the next by more than 5% or the rate of inflation, whichever is less, until that real estate is transferred to a new owner. This recently passed law will significantly impact many families in Leelanau County and Grand Traverse County (Traverse City), especially those families who have had the same property for 20+ years. Previously, if you planned on leaving residential real estate to a family member, the property tax “uncap” might not allow them to afford the new “market value” property tax, resulting in them being forced to immediately sell the family home.

Here is the exact language in the bill (page 4 of 5):

(s) Beginning December 31, 2013, a transfer of residential real property if the transferee is related to the transferor by blood or affinity to the first degree and the use of the residential real property does not change following the transfer. As used in this subdivision, “residential real property” means real property classified as residential real property under section 34c.

(e) Residential real property includes the following:
(i) Platted or unplatted parcels, with or without buildings, and condominium apartments located within or outside a village or city, which are used for, or probably will be used for, residential purposes.
(ii) Parcels that are used for, or probably will be used for, recreational purposes, such as lake lots and hunting lands, located in an area used predominantly for recreational purposes.

The one concern that I am sure will be a hot topic is that this law doesn’t discuss the role of trusts in the transfer of real estate. It does however for the first time allow for the transfer of residential real property to children and step-children without the “uncapping” of property taxes.

Here is a fictional example of could happen starting December 31, 2013:

Suttons Bay waterfront vacation home that has been in the same family since 1972

Current Taxable Value = $200,000 (paying tax on a $400,000 true cash value)
Current Assessed Value = $300,000 ($600,000 true cash value)

-The current owners in this scenario pay non-homestead tax of = ~$7,820 per year.
-Property Transfers under old system “uncaps” the non-homestead tax to = ~$11,730 per year.

Under the new law (Michigan House Bill 4753) the family member(s) will save about $3,550 per year!

Many of waterfront homes on West Grand Traverse Bay, Suttons Bay, Lake Leelanau, Glen Lake, and Lake Michigan could see a $10,000-$20,000 per year difference especially if it is a large “estate” size waterfront parcel that has been in the same family for a long time!

For Full Documents Click Here:   Bill As Passed By The House

                                                  House Introduced Bill

                                                  Final Public Act (the above bill that has become law)

                                                  Michigan Legislature Page: House Bill 4753

Jonathan Oltersdorf, Oltersdorf Realty, LLC
Phone: 231-271-7777
E-mail: jonathan@oltersdorf.com

Real Estate and the "Fiscal Cliff" Bill - What it means

Real Estate Provisions in “Fiscal Cliff” Bill

On January 1, 2013 the Senate and House passed H.R. 8, legislation to avert the “fiscal cliff,” the bill will be signed by President Barack Obama today, on January 2, 2013.

Below are a summary of real estate related provisions in the bill.

Real Estate Tax Extenders

• Mortgage Cancellation Relief is extended for one year to January 1, 2014

•  Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012

• Leasehold Improvements: the 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

•  Energy Efficiency Tax Credit: the 10% tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Return of the “Pease” limitations on itemized deductions for high income filers
Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.

“Pease” limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. The thresholds are indexed for inflation so will rise over time. Under the formula, filers gradually lose the value of their total itemized deductions up to a total of a 20% reduction.

First enacted in 1990, and named for the Ohio Congressman Don Pease who came up with the idea, the limitations continued throughout the Clinton years. The limitations were gradually phased out starting in 2003 and were completely eliminated in 2010-2012. The reinstitution of these limits has far less impact on the mortgage interest deduction than a hard dollar deduction cap, percentage deduction cap, or reduction of the amount of MID that can be claimed.

Capital Gains
Capital Gains rate stays at 15% for those the top rate of $400,000 individual and $450,000 joint return. After that, any gains above those amounts will be taxed at 20%. The 250/500k exclusion for sale of principle residence remains in place.

Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.

Copyright National Association of REALTORS®. Reprinted with permission.
Source: http://www.ksefocus.com/billdatabase/clientfiles/172/4/1711.pdf

Michigan House Bill 4753 – Goal is to Prevent Tax Increase on Family Real Estate Transfers

Michigan House Bill 4753 Intends to Prevent Tax Increase on Family Real Estate Transfers

This topic has been updated in a newer post. Please CLICK HERE.

House Bill 4753 sponsored by Rep. Peter Pattalia has passed the Michigan house and has a decent chance of becoming law by the end of the year. As written, the bill would affect transfer of real estate between family members beginning on December 31, 2013. Currently in Michigan when a piece of real estate is transferred to a new owner (including family members), the taxable value generally “uncaps” to the true value of the property. Once you own a piece of real estate the taxable value cannot increase from one year to the next by more than 5% or the rate of inflation, whichever is less, until that real estate is transferred to a new owner. This piece of Legislation would significantly impact many families in the Leelanau County and Grand Traverse County area, especially those families who have had the same piece of real estate for 20+ years. Previously, if you planned on leaving real estate to a family member, the property tax “uncap” might not allow them to afford the new property tax, resulting in them being forced to sell that home/condo/acreage. Conversely, if the bill does pass, the negative impact will be on local governments and school districts which use property tax dollars to help fund their budget, especially in areas with a large amount of family waterfront cottages such as Leelanau County and Traverse City.     

Here is a fictional example:

Suttons Bay waterfront vacation home that has been in the same family since 1972

Current Taxable Value = $125,000 (paying tax on a $250,000 true cash value)
Current Assessed Value = $200,000 ($400,000 true cash value)

-The current owners in this scenario pay non-homestead tax of = ~$4,869 per year.
-Property Transfers under old system “uncaps” the non-homestead tax to = ~$7,791 per year.

Under the MI Bill 4753 the new family member(s) would save almost $3,000 per year!

Keep in mind that a $400,000 waterfront house is the low of the market for many waterfront homes on West Grand Traverse Bay, Suttons Bay, Lake Leelanau, Glen Lake, and Lake Michigan. In some scenarios you could see a $10,000-$20,000 per year difference. Oltersdorf Realty, LLC will be keeping a close eye on this bill.

For Full Documents Click Here:   Bill As Passed By The House
                                                  House Introduced Bill
                                                  Michigan Legislature Page: House Bill 4753

Jonathan Oltersdorf, Oltersdorf Realty, LLC
Phone: 231-271-7777
E-mail: jonathan@oltersdorf.com

Update on 2013-01-14 22:15 by Oltersdorf Realty, LLC

Michigan House Bill 4753 has been passed into law. I have an updated blog post on this topic that can be found here: /blog/2013/1/14/michigan-house-bill-4753-passed-prevents-property-tax-increa.html

Health Care Reform

Health Care Reform
Top 10 Things You Need to Know About the 3.8% Real Estate Tax

1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will not be subject to this tax.
2. The 3.8% tax will never be collected as a transfer tax on real estate of any type, so you’ll never pay this tax at the time that you purchase a home or other investment property.
3. You’ll never pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.
4. If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will not pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.
5. The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
6. The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
7. In any particular year, if you have no income from capital gains, rents, interest or dividends, you’ll never pay this tax, even if you have millions of dollars of other types of income.
8. The formula that determines the amount of 3.8% tax due will always protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would never be imposed on more than $1,000.
9. It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. But: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.
10. The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. The National Association of Realtors strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

You can download a comprehensive 10 page brochure here: http://www.ksefocus.com/billdatabase/clientfiles/172/8/1437.pdf

Source:http://www.realtor.org/topics/health-care-reform/top-10-things-you-need-to-know-about-the-38-tax
Copyright National Association of REALTORS®. Reprinted with permission.

Real Estate Provisions in the 2010 Tax Relief Bill

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) extending the Bush-era tax rates and a host of other expired and expiring provisions. The legislation is not "paid for," so there are no revenue raisers taken from real estate or other industry groups. The package provides temporary extensions of its numerous provisions. Some are retroactive, as well, so that the rules that had been in place previously will operate as if they had never expired.

Included in the bill are provisions that affect real estate investment and operations—such as energy-efficiency tax credits, capital gains, and more. A few key provisions of interest to REALTORS® include:

•• Retention of Bush-era tax brackets through the 2011 and 2012 tax years;
•• Retention of the capital gains tax rate of 15 percent for assets sold or disposed of during 2011 and 2012;
•• Reduction of payroll taxes for employees and self-employed individuals during 2011;
•• Extension of numerous energy efficiency credits through December 31, 2011, including: the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Buildings credits.

Read a summary of the real-estate provisions in the tax bill > (PDF: 222K)

Source:http://www.realtor.org/government_affairs/bush_tax_cut_extension
Copyright National Association of REALTORS®. Reprinted with permission.

Michigan Senate Bill 77 - General Property Tax Act

UPDATE 12/27/10: On December 22nd, 2010, Governor Granholm VETOED supported legislation aimed at getting the housing market moving. Senate bill 77, which passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years.

The Michigan Association of Realtors has recently posted a podcast discussing the potential outcome of Senate Bill 77 known as the “General Property Tax Act”. This bill could potentially extend the homestead exemption deadline from May 1 to a later date in the year. If you are planning on purchasing a primary home in Leelanau County or Grand Traverse County - Traverse City after May 1, 2011 you definitely should keep your eye on the outcome of this bill! I have also touched on this bill in a previous post found HERE and highlighted below.

"Currently, if you purchase a home in Michigan after May 1st and the house is currently not considered a “primary residence” the property taxes for the entire year will be based on the non-homestead tax rate which can be up to 18 mills higher. This would extend the deadline to October 1st which is great news for home buyers who purchase throughout the summer and intend to use the house as their primary residence if the seller is not currently taking advantage of the principal homestead exemption. "

-Jonathan Oltersdorf-
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231-271-7777

Grand Traverse County - Traverse City - Property Taxes 2011

Below is the apportionment chart provided by the Grand Traverse County – Traverse City Equalization Department showing anticipated 2011 millage rates. This is the chart that is used to figure your estimated 2011 tax bill. In late February all Grand Traverse County – Traverse City property owners will be mailed their new notice of assessment informing them of their updated 2011 State Equalized Value and Taxable Value on their property. Have you ever wondered what your property taxes would be if you lived in another township, or if you switched your homestead status to your non-primary home? The chart below is extremely helpful in comparing property taxes in all Grand Traverse County Townships whether you are in the City of Traverse City or Long Lake Township, etc. You can download the PDF by clicking HERE or on the image below. To figure your estimated tax bill, take your taxable value from your notice of assessment (or approximate house value divided by 2) and multiply it by your township millage rate on the chart (make sure you have the correct school district and homestead status).



For Example – Downtown Traverse City primary home with a Taxable Value of $100,000 (house value of $200,000)



$100,000 * (0.0365063) = A yearly tax bill of $3,651



Note: Compared to 2010 property tax rates this home owner will save $120.00. Proposed millage rates will be 3.5% lower in the City of Traverse City.



DOWNLOAD THE CHART BELOW BY CLICKING HERE





http://www.oltersdorf.com

231-271-7777

Potential Property Tax Changes - Michigan

You can view an updated post on this topic by clicking HERE!

UPDATE: On December 22nd, 2010, Governor Granholm vetoed MAR-supported legislation aimed at getting the housing market moving. Senate bill 77, which passed both the House and Senate in the last days of the 2010 session, allowed foreclosed properties to retain their principal residence exemption for a period of up to 3 years.

Look for this to be reintroduced sometime in early 2011.

Very interesting news was announced yesterday as new housing legislation unanimously passed in the Michigan Senate and now moves to the house for a vote. The topic – Homestead property taxes and the principal residence exemption deadline could be extended from May 1st to October 1st!

What does this mean to home buyers and sellers in Northern Michigan?

Currently, if you purchase a home in Michigan after May 1st and the house is currently not considered a “primary residence”the property taxes for the entire year will be based on the non-homestead tax rate which can be up to 18 mills higher. This would extend the deadline to October 1st which is great news for home buyers who purchase throughout the summer and intend to use the house as their primary residence if the seller is not currently taking advantage of the principal homestead exemption. This is also very beneficial to some sellers, especially within our Traverse City region (Grand Traverse County & Leelanau County) because of the large amount of second homes on the market. If you are selling a non primary residence home, currently you must sell that home before May 1st to a buyer who will file the principal residence exemption form in order for you to prorate your tax portion at a lower millage rate for the year of the sale. If they extend the date to October or November it could potentially reduce your tax bill significantly for the entire year, even if you sell in late summer/early fall. You can read the full press release below. Please let us know if you have any additional questions!

-Jonathan Oltersdorf
http://www.oltersdor.com/

Senate Bill 77, sponsored by Senator Jud Gilbert (R – Algonac) unanimously passed the Michigan Senate today with a vote of 36-0 and now moves to the House of Representatives for consideration. This legislation would provide for an additional “Principal Residence” filing date of October 1st. It should be noted that an amendment has been added to the legislation to move the deadline from October 1st to November 1st for 2010 only so that homebuyers can take advantage of this taxpayer friendly legislation this year.

Under current law, homeowners may file a principal residence exemption on their primary home in Michigan. This exemption provides significant tax relief to those citizens that choose to call this state “home.” In order to claim this exemption, one must file the principal residence affidavit with their local government by May 1st. Buyers purchasing homes after the May 1st deadline, are hit with up to an additional 18 mills of non-homestead property taxes until the following year. This additional property tax burden is standing in the way of new homeownership and otherwise taxing those people that have declared Michigan their home, though they purchased after the deadline.

This legislation has become particularly important since “non principal residence” properties, specifically foreclosures, have flooded Michigan’s real estate market in recent years. The current situation prices buyers out of homes by forcing them to qualify for a mortgage at the higher tax rate. Those buyers that are able to purchase after May 1st are consequently stuck with a significant tax burden for the remainder of the year despite making that new purchase their principal residence. This bill would alleviate some of that pressure by creating a second filing deadline later in the year.

We remain cautiously optimistic regarding the passage of this legislation as there are a finite number of session days left this legislative session. The MAR Public Policy staff will continue to meet with the members of the Michigan House to express the importance of making this tax payer friendly legislation a priority.

Copyright Michigan Association of REALTORS®. Reprinted with permission.

2009 Leelanau Millage/Property Tax Rates

THIS POST HAS BEEN UPDATED FOR 2010, THE NEW POST CAN BE FOUND BY CLICKING HERE.

Have you ever wondered what your property taxes would be if you lived in another township, or if you switched your homestead status to your non-primary home? By clicking the photo below you can download a PDF chart of current Leelanau County property tax rates (post November 2008 election) along with a description of how to figure your own taxes. I hope this helps!

Click HERE to download.

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2009 Stimulus Plan and Housing

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the 2008 tax credit, the new credit does not have to be repaid! Although it had been discussed allowing this tax credit for all home purchases, the final bill that was signed by President Obama only applies to first-time home buyers.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. There are additional requirements to qualify; you can find the federal housing tax credit official website by clicking HERE.

2009 Michigan Property Tax News

The Michigan State Tax Commission at their meeting on February 2, 2009, made it mandatory for County Equalization Directors to use single year sales studies for 2009 for the residential class of all local units. Directors must now request exceptions to this order and must present compelling evidence to support the use of a two year study.

What does this change mean to me?

When Township Assessors determine the SEV (State Equalized Value) for your home, they are required to base your assessment from a home sale study that they must conduct of comparable sales in your area. Before this mandatory change, they could base your assessment on sales from the previous two years. In a declining market this results in a lag effect as your current assessment could be based on sales from 1-2 years ago when home values were higher than they are today. Assessors are now required to only use sales in the last 12 months, which is intended to provide a SEV closer to real market conditions.

How to Understand Your Property Tax Assessment

THIS POST HAS BEEN UPDATED IN A MORE RECENT ENTRY. PLEASE CLICK HERE TO VIEW THE NEW BLOG ENTRY -> /2010/02/how-to-understand-your-leelanau-county.html

(Part 1 of 2)

Every year, typically during the last week of February you will be mailed your new notice of assessment informing you of your updated State Equalized Value and Taxable Value. This is sent to all property owners in the Grand Traverse Region.

State Equalized Value (SEV): The dollar value of an asset assigned by a public tax assessor for the purposes of taxation.

SEV x 2 = The Township Assessors total value for your home and/or property.

Taxable Value: The dollar value established for property tax purposes.

Taxable Value x Your Township Millage Rate = 2009 Tax Bill

Why are these numbers different?
-In 1994 Michigan passed Proposal A creating a new standard in which your property tax would be calculated. The taxable value of a property can only increase by the lesser of 5% or the rate of inflation. In recent years inflation has been under 5% so your tax bill would increase yearly by that rate. Property values had continued to soar and appreciate above the rate of inflation. This created a gap between your State Equalized Value (no increase ceiling per year) and your Taxable Value (no more than 5% increase).

Why is my tax bill still increasing during this downturn?
-Today, most appreciation in Leelanau and Grand Traverse Counties have flattened so you won’t see your SEV continue to soar at high percentages from year to year like in the past but there is still that issue of the gap between the two. This is why you will see your tax bill continue to increase every year (by the rate of inflation or 5%, whichever is less) until your Taxable Value = Your State Equalized Value. If we were still paying taxes like before Proposal A, your current taxable value would already equal your SEV (Proposal A has saved you money). The only alternative is appealing and reducing your SEV below your Taxable Value to see any money saving benefit. I will highlight the procedures for this in a later post.

Written by Jonathan Oltersdorf

3 Tax Saving Opportunities!

Welcome to 2009. I have gathered a list of important 2008 tax issues that everyone should be aware of.

1) First Time Homebuyers $7,500 Tax Credit

Legislation passed in 2008 allowing for first time home buyers to receive up to $7,500 tax credit for a home purchase between April 9, 2008 and June 30, 2009 (A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS) Of course this will have to be repaid to the federal government over 15 years. It acts more like an interest free loan which can be very beneficial for new homeowners or young couples just starting out! There are several guidelines to who is eligible and more information can be found at the government’s official website http://www.federalhousingtaxcredit.com/index.html or by consulting with your accountant.

2) Transfer Tax Exemption

In case you are unaware, when you sell a home in Michigan you must pay a transfer tax (a name for real estate sales tax) generally in the amount of $8.60 per $1,000.00 of the sales price. There was an important opinion by Michigan Attorney General Mike Cox in 2008 clarifying the proper application of this obscure exemption of the Michigan Transfer Tax Act. A seller may seek an exemption from paying the state transfer tax if the following criteria are met:

• The property must have been occupied as a principle residence, classified as homestead property;
• The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
• The property cannot be transferred for consideration exceeding its true cash value (twice the SEV) for the year of the transfer.

Evidently this exemption will only apply to a select few sellers (of the 50 transaction sides that Oltersdorf Realty closed in 2008 none met the criteria) but this number could increase in 2009. This is one of the many reasons it is very important to be informed about your properties taxable and SEV assessments. For example a sale price of $500,000 would save the seller $4,300 if they meet all 3 of the criteria. Please consult your accountant regarding the specifics of this exemption.

3) Receive Principal Residence Tax Exemption on 2 Homes!

In 2008 Governor Granholm signed House Bill 4215, enacting Public Act 96 of 2008, which amended Section 211.7cc of the General Property Tax Act of 1893. The amendment enables a person who has established a NEW principal residence IN MICHIGAN to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner's principal residence. All of the following must be met:

• Must have previously been the owner's principal residence
• The home is currently for sale
• It is not occupied
• It is not leased
• It is not used for any business or commercial purposes

  You must apply for this principal residence exemption by May 1, for the 2009 tax year. This is simply another benefit for home owners who have moved to another home within Michigan and are yet to find a buyer for their previous primary home. Please visit the official Michigan.Gov website for more information by clicking HERE.

  This was a lengthy blog entry and if you would like more information on any of these topics, please contact Jonathan or Vicky Oltersdorf at 231-271-7777 or through email at RealEstate@Oltersdorf.com.

  Entry Written By Jonathan Oltersdorf