Friday, February 26, 2016

Attn Michigan Real Estate Professionals HB 4173

HB 4173 - PA 217 Signed into law 12/15/15

Real Estate Transfer Tax Exemption

If you sold a principal residence after June 24, 2011 and the tax assessed value at the time of sale was less than the year you bought the house you may be eligible for a refund of some of your transfer taxes

Michigan homeowners can claim an exemption from the State Real Estate Transfer Tax Act assessment of $7.50 for every $1,000 in value that was sold. In order to claim the exemption, 3 conditions must be met at the time of sale:
  1. The property must be claimed as the seller’s principal residence.
  2. The tax assessed value of the property (or, state equalized value “SEV”) must be lower in the year of the sale than the year in which the property was purchased.
  3. The property was sold for a price in which a willing buyer and a willing seller would arrive through arm’s length transactions.
Use form MI 2796

Doug Zandstra CPA CFE EA
Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000