Sellers - Do you qualify to SAVE on Michigan Transfer Tax?

The following Q&A was authored by Brian Westrin, Manager of Legal Affairs, MAR.

You may recall reading in past MAR publications that in April of 2008 Attorney General Mike Cox issued a very helpful opinion aimed specifically at clarifying the proper application of Michigan Transfer Tax exemption "t". While this particular exemption has been on the books since the Act was signed into law, the opinion by Attorney General Cox gave heft and some much needed clarity regarding its usefulness in the current marketplace. With a struggling marketplace and declining values hitting Michigan hard, exemption "t" sets forth that a seller may seek the exemption from paying the state transfer tax if all of the following criteria are met:

1. The property must have been occupied as a principle residence, classified as homestead property;
2. 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
3. The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer. The Attorney General noted that the exemption was certainly more applicable to transactions in the current marketplace. However, there are certainly dangers inherent in claiming the exemption without careful consideration of meeting all the qualifications. A claim for the exemption that fails to meet all three criteria above could bring a penalty equal to 20% of the tax assessed in addition to the tax due.
   

While the criteria may seem straightforward enough, many questions from members have shown that grey areas do exist. Thinking of selling your Traverse City Real Estate?  Contact Jon Becker today!  Sellers: If you have a home or property you are considering selling in the Traverse City area please contact me for a FREE Home Evalution. This will show you an in depth comprehensive report on the current market value of your home/property and the competition,  as well as provide you with tips and suggestions on improving the marketability of your home/property and developing an aggressive marketing strategy to help you achieve the "SOLD" status you desire at the highest price possible, beating your competition! ( I average 7% MORE in sales price for my sellers than the local mls average) This service is always a FREE "No Obligation" courtesy. I work very honestly &  aggressively for my sellers and keep them consistantly up to date on changing  Traverse City real estate market conditions, what is new or sold in their area, activity and interest in their listing and all advertising and marketing.  In today's world of technology with 90+% of buyers using the internet to find their next home this is where I focus the main marketing efforts on over 150 websites, many complete with enhanced descriptions, photo slide shows, virtual tours and custom activity tracking and every Traverse City real estate listing is assigned it's own domain name. In addition if you are behind on your mortgage payments and are headed for foreclosure "don't be a statistic " contact me today find out how we can progress with a short sale to save your credit and stress level!    Please view my "Client Testimonials" page for just a few of the comments from my clients.....YOU WON'T BE DISSAPOINTED!
Selling out of area? Contact Jon and I will match you with a knowledgeable, professional agent in that area.